Govt to spend more due to rising needs, but will maintain balanced Budget: PM

MOF will allocate resources judiciously, rigorously evaluate programmes, he says

- Tham Yuen-C Senior Political Correspondent

Government spending in the new term will increase as a share of Singapore’s gross domestic product to meet rising needs, but the Government will maintain a balanced Budget “over the medium term”, said Prime Minister Lawrence Wong on Sept 19.

He also pledged that his Government would continue to spend within its means.

To meet the spending needs, the Government had earlier made tax changes to strengthen its revenue base and structure, said PM Wong, who is also Finance Minister. At the same time, his ministry will steward fiscal resources prudently and effectively.

In the Ministry of Finance’s (MOF) addendum to the President’s Address, PM Wong sketched out how Singapore will invest more resources in securing its place in the world, transforming its economy and building cohesion amid a more uncertain world.

Key to this will be maintaining fiscal discipline and strength, which are Singapore’s strategic advantages, he said.

MOF will allocate resources judiciously and evaluate programmes rigorously to maintain sound and sustainable finances, he added.

“Our fiscal policies aim to ensure a dynamic economy and a strong social compact,” said PM Wong. “This provides assurance and opportunities, and enables a higher quality of life for all Singaporeans.”

During the opening of Parliament on Sept 5, President Tharman Shanmugaratnam had set out the Cabinet’s agenda for the next five years. This week, the various ministries released their addenda to the President’s Address to provide more details on their plans.