Singapore Unveils Budget 2026 To Drive Refreshed Economic Strategy

SINGAPORE, Feb 12 (Bernama) -- Singapore Prime Minister Lawrence Wong today presented Budget Statement 2026, focusing on advancing the nation’s refreshed economic strategy.

Wong, who is also the Finance Minister, emphasised that the republic’s ambition is to secure growth at the higher end of the two to three per cent range over the next decade.

Delivering the first budget for the new term government, including a post-SG60 nation-building phase, he said the government expects higher revenues for the financial year 2025 (FY2025).

Wong attributed the higher FY2025 revenue to better-than-expected economic performance, increased corporate income tax collections, and higher asset-related revenue collections.

“Therefore, I expect to end FY2025 with a surplus of $15.1 billion (S$1=RM3.09), or 1.9 per cent of its gross domestic product (GDP).

“For FY2026, I expect a smaller surplus of S$8.5 billion, or 1.0 per cent of GDP. Our approach remains to keep the budget balanced over time, and across the ups and downs of the economic cycle,” he told Singapore’s Parliament on Thursday.

Singapore’s Budget 2026 came in at S$154.7 billion for FY2026, an increase of 8 per cent from the revised figure of $ $143.29 billion for 2025.

According to the Budget Statement 2026 annexes, Singapore’s operating revenue for FY2026 is estimated at S$134.75 billion, with total expenditure estimated at S$137.32 billion.

Operating expenditure for FY2026 is projected at S$103.27 billion, while development expenditure is estimated at $34.05 billion.

Meanwhile, Singapore’s Budget 2026 will also emphasise harnessing artificial intelligence (AI) as a strategic advantage for the nation, with the republic launching a new set of national AI Missions to drive AI-led transformation across key sectors, including advanced manufacturing, connectivity, finance, and healthcare.

“We will establish a new National AI Council, which I will chair, to provide strategic direction and drive Singapore’s AI agenda.

“We will also launch a new Champions of AI programme to support firms with the ambition to use AI to comprehensively transform their businesses,” Wong added.

Addressing cost-of-living pressures, Wong said the government will continue to help Singaporeans manage these pressures by providing a Cost-of-Living Special Payment of S$200 to S$400 in cash to Singaporean adults earning up to S$100,000.

“Second, there will be additional U-Save rebates to help households with their utility expenses. Eligible HDB households will receive 1.5 times the regular amount of U-Save rebates, or up to S$570 this financial year.

“Third, I will provide another S$500 in CDC Vouchers for all Singaporean households in January 2027,” he said.

On tax revisions, Wong said the government will provide a Preferential Additional Registration Fee (PARF) rebate for cars deregistered by their 10th year.

He said that as electric vehicles become more common, the need to encourage early deregistration through the PARF rebate is reduced.

“I will reduce the PARF rebate by 45 percentage points. I will also lower the PARF rebate cap from S$60,000 to S$30,000,” he added.

-- BERNAMA