Singapore set to post S$2.1 billion budget surplus for FY2018
SINGAPORE — Singapore is expected to have a S$2.1 billion budget surplus in the financial year (FY) 2018, which ends March 31.
In the Budget statement delivered in Parliament, Mr Heng said that the S$2.7 billion increase was due to the unexpected two-year suspension of the Kuala Lumpur-Singapore High Speed Rail (HSR) project and higher-than-expected collections from stamp duties.
SINGAPORE — Singapore is expected to have a S$2.1 billion budget surplus in the financial year (FY) 2018, which ends March 31.
This is revised from the initial S$0.6 billion deficit forecast a year ago, Finance Minister Heng Swee Keat said on Monday (Feb 18).
In the Budget statement delivered in Parliament, Mr Heng said that the S$2.7 billion increase was due to the unexpected two-year suspension of the Kuala Lumpur-Singapore High Speed Rail (HSR) project and higher-than-expected collections from stamp duties.
The projected budget surplus accounts for 0.4 per cent of the country’s gross domestic product (GDP).
FY2018 REVENUE AND EXPENDITURE
Development expenditure is revised downwards due to the suspension of the HSR project, as well as the rescheduling of public housing projects.
Operating expenditure went up, but the drop in development expenditure more than offset the increase, bringing total expenditure down.
Operating revenue rose due to higher collections from statutory boards, corporate income tax and stamp duties.
The contribution from the nation’s reserves, known as the Net Investment Returns Contribution (NIRC), is expected to come in at S$16.4 billion, a 3.7 per cent increase from initial estimates.
FY2019 REVENUE AND EXPENDITURE
For FY2019, the Ministry of Finance is projecting an overall deficit of S$3.5 billion, which is 0.7 per cent of Singapore’s GDP.
Total expenditure:
Estimated at S$80.3 billion, a 1.6 per cent increase from FY2018.
Main contributors to the increase are spending on healthcare, defence and environment-related expenses.
Transport expenditure to go down by 9.1 per cent to S$1.1 billion, partly due to the suspension of the HSR project.
Operating revenue:
Estimated at S$74.9 billion, a 1.7 per cent increase from FY2018.
Higher revenue expected from the various tax schemes.
Stamp duties are expected to fall by 13.1 per cent to S$4 billion due to the property cooling measures that took effect from July last year.
The NIRC is projected to come in at S$17.2 billion, 4.5 per cent higher than last year.
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