Singapore ended the fiscal year 2023 with a deficit of $3.6 billion, 0.5% of the country’s total gross domestic product (GDP).
This is above the $0.4 billion deficit target mentioned by deputy prime minister Lawrence Wong in his speech in 2023.
Real GDP grew by 1.1% to $673.3 billion in 2023, according to the Economic Survey of Singapore 2023 released by the Ministry of Trade and Industry (MTI) on Feb 15. In 2023, the budget focused on helping businesses tide through financial challenges, building capabilities for local enterprises and investing in small- and medium-sized enterprises.
In 2024, Wong aims to budget a small surplus of $0.8 billion or 0.1% of Singapore’s GDP, which is a “balanced fiscal position”.
During his speech in Parliament on Feb 16, Wong unveiled a budget that totalled some $131.4 billion or 18.3% of Singapore's GDP.
“The overall stance is appropriate, targeting support for households and businesses even if the economy is projected to operate at around potential,” says Wong in Parliament.
See also: What may be included in Singapore's unemployment benefits for retrenched workers?
Referring to this year’s theme, “Building Our Shared Future Together”, Wong notes that the country has been able to “weather the storms and emerge stronger” and that major steps have been taken to push Singapore forward.
“Growth is a prerequisite to create better jobs and raise living standards for all. [We want] to equip everyone to realise their potential and ensure everyone benefits from the nation’s progress… many find it hard to implement long term plans, but we can do so because of our healthy and sustainable fiscal position,” he says.
Read more about Budget 2024 on The Edge Singapore.
