Get Ready for the Singapore Budget 2023: What to Expect

Singapore's Budget 2023 is set to be announced on February 14th, and as the date draws closer, speculations about what the budget will contain are on the rise. The country has faced numerous challenges in recent years, including the impact of the Covid-19 pandemic and a gloomy economic outlook that has been compounded by geopolitical tensions. As a result, many Singaporeans and businesses are eagerly awaiting the budget to see how the government plans to support them through the tough period.

Introduction to the Singapore Budget

In 1965, the year Singapore released its first independent budget, development and job creation were the?key focus. Over the years, the budget has evolved to reflect the changing needs and priorities of the country, adapting to the shifting global economic landscape and political climate. As the country became more prosperous, the focus shifted towards social services and the welfare of the people, with increased spending on healthcare, education, and housing.

Today, the Singapore budget remains a critical tool for the government to shape the country's economy and growth. It is seen as a way to support businesses and individuals, create jobs, and promote innovation and competitiveness. The budget is also a key tool for advancing the country's green agenda, supporting initiatives aimed at reducing carbon emissions and mitigating the impact of climate change. With each new budget, the government is faced with the challenge of balancing its economic and social goals, as it seeks to build a better future for all Singaporeans.

The budget process is outlined in the below graphic by the Singapore Ministry of Finance.

How will the Singapore Budget 2023 affect businesses?

Given the current circumstances, the 2023 Budget is likely to focus on refreshing the country's social compact as it advances its economic growth journey. Observers and experts have made predictions about what they expect to see in the budget, and it is safe to say that empowering the economy and jobs, equipping citizens with education and lifelong learning, and caring for their health and social support are among the top priorities. Tax and incentives are also expected to play a critical role in shaping the country's economy and growth.

What new programs and initiatives are expected in the budget?

Climate change is a global issue that affects us all, and it is heartening to see that the government has already taken steps to address it. Singapore established the Singapore Green Plan 2030 and named its first government chief sustainability officer in December 2021, and more moves in this direction are expected in Budget 2023. Measures aimed at boosting electric vehicle (EV) adoption, enhancing food security, and promoting sustainability are likely to be included in the budget.

Housing is another area that has garnered attention, with many Singaporeans looking to upgrade from HDB flats to private homes. There have been calls for changes to the Additional Buyer's Stamp Duty (ABSD) rule, and for shorter waiting times for Build-To-Order (BTO) homes. The government is expected to consider opening up more government land sales sites in the Outside Central Region (OCR) for first-time home buyers and HDB upgraders.

What changes are expected to taxation?

To enhance the economy, tax and incentives are likely to be critical policy tools for shaping the country's growth. This could involve refining the research and development (R&D) regime and enhancing the mergers and acquisitions (M&A) scheme. For R&D, the budget could consider a qualified refundable tax credit and expand the R&D incentive to cover activities outside Singapore. For M&A, the budget could relax conditions on acquiring subsidiaries and allow M&A allowances to be transferred to other Singapore group companies.

When will we know more?

It is important to note that all of the predictions mentioned in this article are merely speculations based on available data and expert opinions. The actual content of the 2023 Singapore Budget will be revealed on February 14th, 2023. As a responsible news source, we will be closely monitoring the budget announcement and providing an in-depth analysis in a subsequent article. Our goal is to provide our readers with the most accurate and up-to-date information about the budget, its implications and its impact on the economy and society. We will be evaluating the budget through the lens of various sectors and stakeholders, providing context, and analyzing its implications for the future of Singapore. Stay tuned for our comprehensive coverage of the 2023 Singapore Budget.