Many Ah Lao can sleep well tonight….Boss Lawrence promised Singapore budget to fix your living costs and jobs as election looms
Bing Hong Lok
Updated Sun, 16 February 2025 at 7:17 PM SGT2-min read
Singapore budget to tackle living costs and jobs as election looms
By Bing Hong Lok
SINGAPORE, Feb 14 (Reuters) - Singapore's government is expected to focus on cost of living issues, housing and employment in next week's budget, as it heads towards an election buoyed by strong growth and low inflation but facing uncertainties over U.S. trade policies.
Economists forecast an expansionary budget in 2025, with DBS expecting an overall fiscal deficit of S$3.8 billion ($2.8 billion), or 0.5% of gross domestic product and Maybank estimating a deficit of S$6 billion, or overall surplus of 0.8%.
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The two banks expect the government to report an overall fiscal surplus of 0.8% of GDP in 2024, higher than the government forecast of 0.1% due to unexpected growth in revenue from corporate and personal income and goods and services taxes.
"Measures will look to cushion households' cost of living pressures and support families. Initiatives will aim at sharpening long-term economic competitiveness," DBS economist Chua Han Teng said in a report.
The budget will be announced on Tuesday by Prime Minister and Finance Minister Lawrence Wong, his first since taking the top post last year.
Some economists expect him to retain or increase cost-of-living support, such as cash, grocery vouchers and utility rebates, despite improving domestic conditions, as the People's Action Party that has dominated Singapore politics tries to improve on its 2020 election performance.