Budget 2023

Looking ahead, FY2024 may be the crunch time where Singapore makes up for the previous few years of deficits, says OCBC chief economist Selena Ling.

That will make the Singapore economy more resilient in the medium- to long-term in a new era where the global economic landscape is more fragmented with [greater contestation between the major powers](https://www.channelnewsasia.com/singapore/new-era-power-contestation-singapore-unveils-s1042b-budget-reposition-economy-buttress-households-3277251). Overall, the Government is expecting a slight deficit of S$0.4 billion in FY2023, or 0.1 per cent of Singapore’s GDP. The role of the policymakers may be “kiasu” but the need to repeatedly go back to the President for approval to draw on past reserves may have contributed to putting in an initially larger estimate. In fact, if global and domestic growth manages to surprise on the upside this year, we may even see a small surplus manifest in FY2023. The question remains as to where the workers are going to come from in the short-term, or will we see companies trying to outbid each other for workers. Budget marksmanship traditionally works in more normal economic cycles. Overall, I am hopeful following the Budget 2023 announcement. The enhanced GST and CDC voucher schemes, as well as other one-off payments, will bring Balance and prioritisation of needs were definitely key in this budget. [ageing population](https://www.channelnewsasia.com/singapore/budget-2023-elderly-cpf-payouts-retirement-sum-scheme-eldercare-medifund-3276871), improving infrastructure, and [enhancing the competitiveness of Singapore](https://www.channelnewsasia.com/singapore/national-productivity-fund-enterprise-innovation-scheme-smes-businesses-budget-2023-3276756) is also the right move. [high-end properties](https://www.channelnewsasia.com/singapore/bsd-buyers-stamp-duty-rate-homes-properties-increase-3277026), [luxury cars](https://www.channelnewsasia.com/singapore/budget-2023-car-tax-arf-parf-omv-coe-3277081) and [tobacco](https://www.channelnewsasia.com/singapore/budget-2023-tobacco-excise-duty-tax-cigarettes-15-percent-increase-3277041) – the so-called wealth taxes coming into play again, but more reminiscent of a Robin Hood with a light touch. [bringing the package to S$9.6 billion](https://www.channelnewsasia.com/singapore/gst-voucher-assurance-package-cash-payout-budget-2023-lawrence-wong-3276541) – appeared to err on the side of generosity but it came with the caveat not to expect this year after year.

Among measures announced by DPM Wong, the Government-paid paternity leave will be doubled from 1 January 2024, and CPF monthly salary ceiling will be raised ...

- Doubling of the U-Save Rebates provided to households over the next three tranches of disbursement this year. Additionally, the minimum CPF monthly payout for seniors on the Retirement Sum Scheme will be raised to S$350 a month. This will bring the total AP Cash payments received by adult Singaporeans to between S$700 and S$2,250 over five years. Coming to middle-income Singaporeans – in efforts to help them save more, the CPF monthly salary ceiling will be raised from S$6,000 to S$8,000 by 2026 to keep pace with rising salaries. For these two increases, the Government had provided employers with a CPF Transition Offset to alleviate the increase in business costs. For a start, the extra two weeks will be given on a voluntary basis, so that employers who are ready to grant the additional leave will be reimbursed by the Government. For the first four years after implementation, I will provide a CPF Transition Support to lower-income Platform Workers who see an increase in their CPF contribution rates." The Minister for Manpower will share more details on this at the COS. Platform companies will also be required to pay CPF contributions for these platform workers. The Government will also aim to catalyse an additional S$300mn of private investments to support SMEs. "To cover these firms, I will allow businesses the option to convert 20% of their total qualifying expenditure per Year of Assessment into a cash payout of up to S$20,000. Next, to help businesses press on with innovation, the Government will be introducing a new Enterprise Innovation Scheme.

The Singapore Business Federation (SBF) welcomed business support measures from the 2023 budget.

The government’s continual funding of the Energy Efficiency Grant (EEG) will also encourage more Singapore companies to adopt energy-efficient practices and enhance Singapore’s efforts to promote sustainable development and combat climate Change,” the SBF said. “These job-skills integrators or intermediaries will play a crucial role as they serve to close the labour and skills gaps. Meanwhile, the SBF also underscored the importance of the new Enterprise Innovation Scheme and the additional S$4 billion top-up to the National Productivity Fund (NPF).

Finance Minister Lawrence Wong arrives at Parliament House to deliver the Budget speech on Feb 14, 2023. PHOTO: THE STRAITS TIMES.

RATES of the Additional Registration Fee (ARF) – a tax imposed when a vehicle is being registered – will be adjusted by up to 100 percentage points to ...

With more help to buy a first home and offset the GST hike and rising costs of living, Budget 2023 seeks to provide assurance to citizens.

Resilience as a people is what has enabled Singapore to overcome challenges in the past, and most recently during the COVID-19 pandemic. In this, the integration of efforts across the public, private and people sectors will give Singapore a systemic advantage. Terence Ho is Associate Professor in Practice at the Lee Kuan Yew School of Public Policy. Meanwhile, first-timer families will welcome having up to S$30,000 in [additional housing grants](https://www.channelnewsasia.com/singapore/budget-2023-cpf-housing-grant-resale-bto-flats-analysts-3279196) to ease worries they may be priced out of the red-hot HDB resale market. Adjustments include finetuning the Build-to-Order (BTO) balloting system to recognise that needs are uneven in the large pool of first-timer flat applicants and that specific groups like those with children or those buying their first home should be given priority. Trust underpins partnerships among citizens, the government and stakeholders. But Budget 2023 could not and did not cover everything. Over time, more should become more accustomed to working with PWDs and ex-offenders, engendering a more inclusive workplace and society.By influencing consumption patterns and labour market practices, public policy can help to mould norms and even shape values over time. The long-term view is all about renewing trust, says the Lee Kuan Yew School of Public Policy’s Terence Ho. [helping parents](https://www.channelnewsasia.com/singapore/budget-2023-parents-families-baby-bonus-paternity-leave-cda-3276766) with the cost of raising kids and giving them a good start in life, supporting [platform workers](https://www.channelnewsasia.com/singapore/platform-worker-cpf-budget-2023-cpf-3276761) with the transition to employee Central Provident Fund (CPF) contributions for better retirement adequacy, and topping up the ElderCare Fund and MediFund for seniors’ long-term healthcare needs. [Assurance Package and permanent GST Voucher](https://www.channelnewsasia.com/singapore/gst-voucher-assurance-package-cash-payout-budget-2023-lawrence-wong-3276541) will provide greater support to households to cope with the rising cost of living. [the Goods and Services Tax (GST) hike](https://www.channelnewsasia.com/singapore/gst-increase-retail-prices-expensive-cost-living-3185061), Budget 2023 should be noted for the [Government’s spending and investment plans](https://www.channelnewsasia.com/singapore/budget-2023-cash-payouts-buyers-stamp-duty-cpf-what-you-need-know-3277091).

Singapore's DPM Lawrence Wong says Budget 2023 was "particularly challenging" as the country tried to ensure fiscal prudence while helping Singaporeans with ...

"In the end, we've tried to do that by tapering it down. "So how do you find the sweet spot?" "On the one hand, you had to try and get our fiscal position to a more sustainable one, especially after spending so much during Covid. "And because of inflation, many people want help with cost of living measures. Wong said during the speech on Tuesday afternoon. - Setting Singapore's budget was challenging this year, as it required a "very delicate balancing act" to ensure fiscal prudence while helping Singaporeans deal with rising costs, Finance Minister Lawrence Wong told CNBC in an exclusive interview.

A newly announced increase in additional registration fee for higher-end cars will also contribute to this. Read more at straitstimes.com.

In 2012, they made up 44.6 per cent of 617,556 cars here. The actual FY2021 revenue from vehicles, COEs and vehicular excise duty amounted to $5.78 billion or 7 per cent of the total operating revenue of $82.49 billion. And second, the market share of higher-end cars should continue to grow, offset by concessions given to cleaner energy vehicles such as electric cars. Motor vehicle taxes, COE premiums and excise duty for vehicles (but excluding attendant goods and services tax) make up 6.9 per cent of 2023’s estimated total operating revenue of $96.7 billion, which is 7.1 per cent higher than the revised FY2022 estimate of $90.28 billion. Meanwhile, excise duty for motor vehicles is expected to total $279.9 million, or 7.1 per cent higher. SINGAPORE - Revenue from motor vehicle taxes and certificates of entitlement (COEs) is expected to rise by 4.6 per cent this year to $6.42 billion.

SINGAPORE - Budget 2023 contains various measures to help tide Singaporeans over immediate cost-of-living pressures, as well as to grow the economy, ...

Of this, a total of $457.17 million is being set aside to upgrade HDB precincts. For the projected 26,900 Institute of Technical Education students, $542.22 million has been set aside. Projected total expenditure for FY2023: $3.45 billion Projected total expenditure for FY2023: $4.16 billion Projected total expenditure for FY2023: $8.29 billion Projected total expenditure for FY2023: $8.74 billion Projected total expenditure for FY2023: $14.6 billion Projected total expenditure for FY2023: $16.88 billion Projected total expenditure for FY2023: $17.98 billion Most of MND’s budget, or around 86 per cent, will go to its operating expenditure in the form of grants and capital injections for public housing, while around $1.21 billion will go to its development spending, of which $992.77 million will be set aside for public housing expenditure. The portion of the ministry’s budget dedicated to development – $1.38 billion – will be used to build projects such as the Woodlands Health Campus, Singapore General Hospital’s Emergency Medicine Building and Elective Care Centre, as well as IT infrastructure for new healthcare facilities and other major IT projects. A sum of $1.38 billion from the Health Ministry’s budget will be allocated to the continued development of projects such as the Woodlands Health Campus and the Emergency Medicine Building at Singapore General Hospital.