- Singapore has said its fiscal deficit in 2022 will be lower than expected, at $1.5 billion, or 0.3% of gross domestic product.
- Finance Minister Lawrence Wong has acknowledged that 2022 will be the “year of brutal global inflation” and that cost pressures continue to weigh on the economy, which grew 3.6% last year.
- “There are some early signs that global headline inflation is softening, but it is too early to declare victory. said.
Lawrence Wong, Singapore’s Deputy Prime Minister and Finance Minister, presented the 2023 Singapore Budget to Parliament on 14 February.
Ole Hui Ying | Bloomberg | Bloomberg | Getty Images
SINGAPORE — Singapore says its fiscal deficit in 2022 will be lower than expected, at $1.5 billion, or 0.3% of gross domestic product.
In a budget speech to parliament on Tuesday, Finance Minister Lawrence Wong said a modest deficit of S$2 billion ($1.5 billion) or 0.3% of GDP is expected in 2022. The country previously estimated its 2022 deficit to be S$3 billion, he said.
He acknowledged that 2022 will be the “year of brutal inflation globally” and rising cost pressures continue to weigh on Singapore’s economy, which grew 3.6% last year.
“By the end of last year, global inflation was around 9%, with inflation reaching historic levels and many advanced economies,” he said.
“Singapore has also had to contend with these inflationary pressures — [the Monetary Authority of Singapore] “Since October 2021, we have tightened monetary policy five times.”
Core inflation in Singapore rose to 5.1% in October and remained unchanged until December.
He said Singaporeans “should be prepared for a period of relatively high inflation, both globally and in Singapore.”
“There are some early signs that global headline inflation is softening, but it is too early to declare victory. said.
For example, households can expect GST vouchers from the current S$500 to S$700 this year.
Inflation is expected to pick up further next year with the GST rising another 1 percentage point to 9%.
Households can also expect up to S$850 in GST vouchers in 2024 to deal with the GST increase.
“We help companies weather the immediate challenges of tightening financial conditions and rising energy prices,” he said. Measures include current enhancements to corporate financing schemes and energy efficiency subsidies until March 31, 2024, and working capital loans for local construction projects through Project Loans.
“We hope this will also encourage financial institutions to continue extending credit to viable businesses.”
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