Fiscal surplus could exceed expectations at $5b: UOB

This would mean 0.7% of the GDP.

UOB projects Singapore’s overall fiscal position for 2024 (FY 2024) to show a surplus of $5b, or 0.7% of the gross domestic product (GDP), higher than the earlier budgeted $0.8b, or 0.1% of GDP.

Singapore’s Budget 2025 will be presented on 18 February 18 by Prime Minister and Finance Minister Lawrence Wong.

This is expected to be the last budget before the upcoming General Election, which must be held by November 23, and coincides with the country’s 60th year of independence in August.  

This provides room in FY 2025 to support lower-income households amidst continued cost-of-living pressures whilst maintaining fiscal prudence under the Balanced Budget Rule, UOB said in a Macro Note. 

Budget 2025 is expected to be expansionary, with a projected fiscal deficit of $2.7b, or 0.4% of GDP.  

The budget is likely to focus on cost-of-living relief and job security, strategies to boost fertility rates, and investments in areas such as artificial intelligence, finance, and the green transition.

Measures to support families at different life stages may also be included, in line with the Forward Singapore Report and the National Day Rally 2024 announcements.