Budget 2016 was announced on March 24 by Finance Minister Heng Swee Keat. With the theme “Partnering for the Future”, it exemplifies the benefits of collaboration at the national level. For Singapore to continue thriving in the next 50 years, everyone – businesses, trade associations, government and individuals – has an important role to continuously engage, innovate and collaborate with each other. Budget 2016 seeks to transform our economy through enterprise and innovation while building a caring and resilient society.
The government expects an overall budget surplus of $3.4 billion (0.8% of gross domestic product) for FY 2016. Total spending is expected to be $5 billion – 7.3% higher than FY 2015. Minister Heng said the rise in expenditure in FY 2016 will be supported by increases in both operating revenue and higher net investment return contributions. He highlighted the need for prudence and expects growth in the long term to be more challenging, as expenditure needs are likely to grow faster than revenues.