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Balanced budget: spending within its means.
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Singapore’s fiscal policies are ultimately based on the idea of
a balanced budget – that for
any given year, expenditures should meet revenues. Put in another way, the
Singapore Government has committed to spending
within its means.
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Fiscal demands are rising.
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The ageing population will mean more
spending on healthcare and other measures. A
changing economy will mean disruptions when it comes various kinds of
employment support and training programmes, all of which will mean additional
support from the present.
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On the revenue side of the ledger.
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Negotiations over global corporate tax
regime through the OECD's Base Erosion/Profit
Shifting initiative remain uncertain, and the outcomes of a final agreement
remain unclear.
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The Goods and Services Tax is going through changes and are not likely to be revised in
the near future.
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The Personal Income Tax has been through several changes in the last few years, and
can be thought as a more flexible instrument for the purposes of revenue
collection. The Personal Income Tax is also the second largest source of
revenue, after the corporate income tax.
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