Here’s a sneak peek into Budget 2016

More fiscal incentives are on the cards.

Singapore’s 2016 Budget is expected be more neutral than last year’s lavish Jubilee budget, but analysts say that it will remain accommodative in order to help ease the strain of the economic slowdown.

According to OCBC, there are three key things to watch in the 2016 Budget. First, the conservative official 2016 growth forecast of 1-3% suggests that an aggressively fiscal stance may not be forthcoming.

Second an infrastructure investment focus will imply sustained public construction projects which could provide a stabilising growth force as seen in the 4Q15 flash GDP growth data. Analysts are wondering whether the earlier deferment of foreign worker levy hikes be extended or reinstated.

“The FY16 Budget will be delivered on 24 March. Given the new term of government, a more neutral to slightly accommodative FY16 Budget may be in order, while maintaining its fiscal prudence philosophy,” OCBC said.

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