In another two weeks’ time, Deputy Prime Minister and Finance Minister Lawrence Wong will deliver Singapore’s Budget 2024.
But hor, have you ever wondered how the Singapore Budget is prepared and implemented? No right? Because all you care about is how much “ang bao” you will get from the Gahmen! And if you think Gahmen never give you much, you will KPKB and say “KNS give us chicken wings and take back one whole chicken.”
To help you become a more educated and cultured Singaporean, let us break down the Singapore Budget Process into digestible pieces, making it easier for you to understand.
Financial Year
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. This 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.
Public Consultation
Before drawing up the Budget, the Ministry of Finance (MOF) will initiate a public consultation process, usually starting in November. This process lasts for about two months, during which feedback is collected to shape the upcoming Budget. All views and suggestions submitted during this period are considered in the Budget’s design.
Cabinet Approval
Once the public consultation process concludes, the Budget is presented to the Cabinet for approval.
This part is very important ah, because the Budget must align with the Gahmen’s vision and objectives.
Government Revenue
In case you didn’t know, the Gahmen’s operating revenue is approximately 15% of Singapore’s Gross domestic product (GDP). The majority of this revenue comes from Corporate Income Tax, Personal Income Tax, and the Goods and Services Tax.
Balanced Budget
Unlike many other countries, Singapore is constitutionally obligated to maintain a balanced budget for each term of Gahmen.
This means that the Gahmen does not rely on borrowing money to fund its expenditure. Instead, it focuses on careful financial planning and managing resources effectively.
Think about all your subsidies lah, GST vouchers lah, the money you get from Gahmen during the COVID-19 period and so on and so forth. If the Gahmen never plan their spending carefully, you think where these money from? Cannot be drop from the sky right?
So ah, this whole Budget Process is to ensure that the Gahmen plans its finances responsibly and with the public’s input.
By maintaining a balanced budget and addressing the needs of Singaporeans, this process plays a very important role in shaping Singapore’s future!
