Budget surplus three times higher than expected

SINGAPORE — Buoyed by higher-than-expected collections from stamp duty and Certificates of Entitlement (COEs), the Government’s coffers last year swelled by S$3.9 billion, or three times higher than initially forecast.

According to the Budget Book, which lists government revenue and expenditure in the past year as well as the estimates for the year ahead, the Government collected S$4.18 billion, or 68 per cent more than expected in stamp duty collections, as the property market remained buoyant last year, despite the roll-out of several rounds of cooling measures.

COE receipts were also nearly 37 per cent more than forecast, at S$2.8 billion, while higher foreign-worker levy collections also contributed to a 10.7 per cent bump in Other Taxes, which also includes water conservation tax, development charge and annual tonnage tax.

In the coming financial year, the overall surplus is projected at S$2.42 billion. Higher expenditure is expected in education and health, among others. The Education Ministry’s projected expenditure is S$11.64 billion — about 11 per cent higher than last year — because of the expansion in publicly-funded university places, as well as salary adjustment of education officers and annual salary increment.

For the Health Ministry, the S$5.7 billion set aside — S$0.9 billion more than for FY2012 — will go towards expansion in clinical services and higher remuneration for healthcare professionals, as well as enhancements in the mental health sector.

The higher foreign worker levies announced for all sectors in this year’s Budget is also expected to contribute to S$0.85 billion more in Other Taxes in collections.