Ever wondered about the Singapore Budget Process? Here’s a look at what you need to know:
1. The Singapore Budget is prepared for each financial year, which begins on 1 April of every calendar year and ends on 31 March of the next calendar year.
The Budget includes the revised government revenue and expenditure projections for the current financial year, as well as the planned government revenue and expenditure in the coming financial year.
Before drawing up the Budget, MOF starts its public consultation process in November to gather feedback for the next financial year’s Budget.
The feedback process generally lasts for about two months, and all views and suggestions submitted during the feedback period are taken into account in the design of the Budget. After which, the Budget is presented to the Cabinet for approval.
Watch a video on how the Budget is approved in Parliament here:
2. The Government’s operating revenue is approximately 15% of GDP with the bulk coming from Corporate Income Tax, Personal Income Tax and the Goods and Services Tax.
3. Singapore is required under the Constitution to keep a balanced budget over each term of Government. Unlike many other countries, Singapore does not borrow* money to fund expenditure.
So how has Singapore maintained a balanced Budget?
4. Check out how the Budget has helped Singaporeans over the years:
Check out the Ministry of Finance’s Budget site now at http://www.singaporebudget.gov.sg/budget_2014/home.aspx
Budget 2014 will be delivered on 21 Feb 2014 by DPM Tharman Shanmugaratnam. Follow @MOFsg, @REACH_Singapore or @govsingapore for more updates.
*Refers to borrowings through the Government Securities Act. The Government currently borrows through the Government Securities Act, where the proceeds are invested and cannot be used to fund expenditure.
Edited on 11 Mar 2019.