Singapore Budget 2021 : A Bird’s-eye view

Singapore 2021 Budget at a glance –

  • Revenue:

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 –

Year$S M
202176,640Projected
202064,610Actual
201974,730Actual
201873,738.3Actual
201775,815.7Actual

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.

  • Expenditure:

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 –

Year$S M
2021102,340Projected
202094,063Actual
2019104,842Actual
201878,990Actual
201773,920Actual

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 –

Year$S MDeficit/Surplus
2021-11,010DeficitProjected
2020-64,900DeficitActual
2019-3,480DeficitActual
20182,120SurplusActual
20179,610SurplusActual

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.

Year$S M
202119,560Projected
202018,140Actual
201917,050Actual
201816,400Actual
201714,600Actual

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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Published by Amit

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