Singapore 2021 Budget at a glance –
Revenue collection is projected to be $76.6 Billion, 18.6% higher than the previous year’s revised revenue estimates.
Below are the recent 5-year revenue collection data –
There is a sharp drop in 2020 because of COVID19 situation. But projected revenue for 2021 appears to bring it pre-COVID19 level.
- Overall tone of economic policy:
Accommodative fiscal and monetary policy will continue to be in the effect this year as well.
Total spending is projected at S$102.34 billion, 8.8% higher than the previous year.
Below are the recent 5-year total expenditure data –
There in increment in allocation to healthcare, Transportation (primarily most affected segments such as airlines & aerospace segments) and defence, compared to previous year (these three sectors account for almost 45-50% of total planned expenditure).
Including top-ups to endowment and trust funds, special transfers will drop to S$4.86 billion from S$53.59 billion in previous year (an unusual year because of COVID19).
- Fiscal deficit:
It is expected to be 2.2% of 2021’s GDP (previous year deficit was 13.9% of its GDP).
Below are the recent 5-year fiscal deficit data –
This year will be third consecutive deficit year for Singapore economy. Though this year’s deficit is expected to be much less compared to 2020 deficit level.
- NIRC (Net Investment Returns Contribution):
It is expected to be S$19.56 billion, 7.8% higher than previous year figure.
NIRC contribution is going to be very crucial for this year’s budget.
NIRC comprises Up to 50% of the Net Investment Returns (NIR) on the net assets invested by GIC, MAS and Temasek; and. Up to 50% of the Net Investment Income (NII) derived from past reserves from the remaining assets.
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