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Budget 2022 renews, strengthens social compact for Singapore, says Finance Minister Lawrence Wong

MORE SOCIAL SPENDING OVER NEXT DECADE

Mr Wong stated that Singapore has been capable of hold public expenditure extraordinarily lean, and authorities spending, excluding COVID-19 expenditure, stands at S$88 billion or 18 per cent of GDP – among the many lowest in developed economies.

About 80 per cent of that is funded by taxes, whereas the remaining 20 per cent is from Net Investment Returns Contribution (NIRC). NIRC is a seamless stream of revenue from long-term anticipated returns generated by Singapore’s reserves and as much as 50 per cent can be utilized by the Government.

“This fiscal approach has enabled us to keep our overall tax burden low,” he stated, including that half of Singapore’s employees wouldn’t have to pay revenue taxes.

“Put another way, for the quality of public services we have in healthcare, education, housing, transport and many other areas, the amount of tax our citizens pay is much lower compared to many developed countries.”

Singapore has additionally been adjusting its strategy over time, with the Government virtually doubling social spending from S$17 billion to S$31 billion over the past decade. It now takes up practically half of its annual Budget, and goes to subsidies for healthcare, training and assist schemes for seniors and lower-wage employees.

Mr Wong assured Singaporeans that within the subsequent decade, Singapore will “invest even more” its individuals and social infrastructure, and strengthen its system of “collective risk sharing”.

“We want to uphold that sense of obligation to each other, and strengthen the assurance that, whatever the challenges we face, we will always have each other’s back,” he stated.

“These plans require additional spending. They reflect the need to respond to lasting structural shifts in our society, as well as our new social and environmental aspirations.”

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