Singapore’s Fiscal 2024 Budget: Balancing Social Support and Surplus

Singapore’s Finance Minister Lawrence Wong unveiled key initiatives in the fiscal 2024 budget, prioritizing increased social support alongside maintaining a surplus. With a probable succession to Prime Minister Lee Hsien Loong anticipated before the year’s end, Wong announced enhancements to citizen handouts, including cash and vouchers to counteract rising expenses, bolstered funding for skills enhancement among workers, and improved assistance for young families.

Simultaneously, certain property taxes will see an uptick, while companies stand to benefit from a tax rebate capped at S$40,000, and individual income taxpayers could receive up to S$200.

Anticipating a deficit of S$3.6 billion for the fiscal year concluding on March 31, followed by a surplus of S$800 million for the subsequent fiscal year, equivalent to 0.1% of GDP, Wong emphasized the necessity of prudent expenditure management. He underscored the multitude of pressures urging increased government spending, warning of a significant funding gap if not addressed.

Moreover, the government outlined plans to allocate funds towards AI advancements and bolster the development of the financial services sector.