SINGAPORE, Feb 18 (Reuters) - Singapore Prime Minister Lawrence Wong delivered a budget on Tuesday that offered support for workers and businesses and help with living costs in a general election year, his first as the leader of the wealthy city-state.
Here are highlights of Wong's budget speech:
A deficit of S$6.8 billion ($5.07 billion) equivalent to 0.9% of GDP, projected for fiscal year 2025 (April 1 to March 31)
The 2024 fiscal year projected to end with a surplus of S$6.4 billion, higher than an earlier estimate of S$0.8 billion
Expenditure includes S$3 billion in transfers to individuals and households in vouchers usable for groceries, food
Government spending projected to rise to 20% of GDP by around 2030
Introduction of 50% corporate income tax rebate for the 2025 assessment year
Development of a new national semiconductor R&D fabrication facility and refurbishment of public biosciences and medical tech research infrastructure totalling about S$1 billion
Introduction of a new S$1 billion private credit growth fund, providing more financing options for high-growth local enterprises
Tax incentives for Singapore-based companies and fund managers that choose to list and grow economic activities in the city-state
Tax incentive for fund managers investing substantially in Singapore-listed equities
A S$5-billion top-up to Singapore's climate change fund
A "significant" increase in corporate income tax collections in the last two years, projected to reach 4.1% of GDP in fiscal year 2024
The table shows key Singapore forecasts for 2025, released prior to the budget:
2025 forecasts | |
GDP | 1.0% to 3.0% |
Core inflation | 1.0% to 2.0% |
Headline inflation | 1.5% to 2.5% |
Non-oil domestic exports | 1.0% to 3.0% |
All numbers are rounded. The full set of forecasts is available at https://www.mof.gov.sg/singaporebudget
($1=S$1.3422)
(Reporting by Xinghui Kok, Rae Wee and Fanny Potkin; Additional reporting by Bing Hong Lok; Editing by Martin Petty and Clarence Fernandez)
((xinghui.kok@thomsonreuters.com))
