Singapore To Spend More For 2016

By Massita Ahmad SINGAPORE, March 25 (Bernama) -- Singapore's 2016 Budget, which was unveiled on Thursday, will see the government's spending increase by 7.3 per cent, or S$5 billion (S$1 = RM2.95), from last year. "The increases will mainly be in healthcare, education, security and urban development," said Finance Minister, Heng Swee Keat, when delivering the Budget at the Parliament here Thursday. The budget has three key thrusts to address the challenges in its economy. One of them is to address cyclical weaknesses which the Singapore government will adopt an expansionary fiscal stance to provide some counter. Heng said taking into account the higher expenditures and additional measures introduced in the Budget, the projection was that this would amount to a positive fiscal impulse of slightly over one per cent of gross domestic product (GDP). "This, together with relief measures targeted at small medium enterprises, will provide support in the near term," Heng said. The minister expected an overall budget surplus of S$3.4 billion, or 0.8 per cent, of GDP in this first year of the term. "This position seeks to strike a balance between being prudent given the continued rise in expenditures we expect in the years ahead and being accommodating to support enterprises in the current economic climate even as we continue our restructuring efforts. "Should economic conditions turn, we stand ready to adjust and respond. "Singapore's GDP is expected to grow at one per cent to three per cent for the year, not very different from the two per cent in 2015. "So while conditions are difficult, we should not be overly pessimistic, said Heng. --BERNAMA