Rising healthcare costs are expected to drive up government spending in the years ahead.
It is expected to increase from about 18 per cent of gross domestic product GDP) now to 19 per cent to 20 per cent in the financial years FY) 2026 to 2030, and possibly exceed that by FY2030, a Ministry of Finance MOF) paper said.
The current total revenue, which comprises operating revenue and Net Investment Returns Contribution, is lower, at about 18.5 per cent of GDP. This is not enough to cover the projected increase in government spending.
To help close this gap, tax changes announced in Budget 2022 will contribute about 0.7 per cent of revenue.
The new projections up to FY2030 were part of an occasional paper looking at the fiscal implications of the medium-term challenges facing Singapore that was released on Wednesday.
While the authorities said previously that the Budget 2022 tax changes were meant to cover the increase in healthcare and social spending costs, this is the first time detailed numbers have been pulled together to show how these moves are likely to ensure a more balanced budget.
The measures announced in 2022 include confirming the timeline of the goods and services tax GST) hike from 7 per cent to 9 per cent, increases to the top marginal personal income tax rate, as well as changes to property tax and fees for those purchasing luxury cars.
This story is from the February 09, 2023 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 09, 2023 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
S. America footballers not going home as crime rages
A wave of crimes against South American footballers has underscored the risks faced by players who loathe to return home from overseas clubs to a region where they, or their loved ones, risk being kidnapped, blackmailed or targeted by gangs with a message to send.
SMART STAR RATES HIGHLY AFTER FLUENT WORKOUT
Roda Robot and Sacred Command set to liven up Class 41,400m contest on May I2
MAS closely monitoring’ DBS as it identifies root cause of outages
May 2 disruptions took place with bank still working on plan to address 2023’s incidents
Tokyo Disney banks on Frozen, Peter Pan in 2.8b expansion
Tokyo Disney Resort is opening a new 320 billion yen (S$2.8 billion) section celebrating some of its most popular fantasy franchises, the biggest expansion yet in Japan as Walt Disney invests heavily in theme parks globally.
VinFast gets EV reality check as shares plunge 65%
Vietnam company’s 2024 slide underlines challenges to realising ambitious plans
Jeweller faces 3 due-diligence charges; 313,000 in sale proceeds linked to scams
A jewellery shop was charged on May 7 with not performing the required checks when it sold gold jewellery and a gold bar for over $313,000 to an unidentified person, when there was reason to suspect money laundering.
‘We don't want to fail parents another time’: Cordlife CEO
Firm has tightened measures to ensure safe cord blood storage; new lab hires added
Cyber-security law amended to boost oversight of critical systems
Act updated to keep up with new tech models, use of outsourced services
Scoot flight on Embraer jet marks S’pore debut for Brazil-made plane
Maiden flight on 112-seater to Krabi almost full, just like for later Hat Yai flight
Putin starts new term as Russia's President with challenge to West
Russian President Vladimir Putin said it was up to the West to choose between confrontation and cooperation as he was sworn in for a new six-year term on May 7 at a Kremlin ceremony that was boycotted by the US and many of its allies.