SINGAPORE - Budget 2023 contains various measures to help tide Singaporeans over immediate cost-of-living pressures, as well as to grow the economy, equip workers with skills, strengthen Singapore’s social compact and build a more resilient nation.

Several developments delayed by the Covid-19 pandemic are also on the way, according to detailed spending plans announced by the various ministries for the 2023 financial year (FY).

As in past years, the ministries with the largest budgets are Defence, Health and Education.

A sum of $1.38 billion from the Health Ministry’s budget will be allocated to the continued development of projects such as the Woodlands Health Campus and the Emergency Medicine Building at Singapore General Hospital.

For the Defence Ministry, the construction of NS Square at Marina Bay will commence.

The Ministry of Sustainability and the Environment’s spending plans include the development of a new crematorium in Mandai.

In FY2023, the total expenditure across ministries is expected to hit $104.2 billion, a slight increase from 2022’s $102.41 billion.

Here are several highlights of the spending plans by several ministries: 

1. Ministry of Defence

Projected total expenditure for FY2023: $17.98 billion

Almost all the money allocated, or $17.04 billion, will go to the Singapore Armed Forces – including payments for military equipment, maintenance of equipment and camps, as well as the salaries of full-time, operationally ready and regular national servicemen.

For FY2023, the ministry’s development expenditure of $871.31 million will be spent on construction projects such as those previously affected by Covid-19 and the development of NS Square, which will replace the Marina Bay floating platform.

2. Ministry of Health

Projected total expenditure for FY2023: $16.88 billion

On the operational front, $15.51 billion will be spent, such as on more patient subsidies as new polyclinics open in Sembawang and Tampines North, and on the ramping up of capacity ahead of the opening of Woodlands Health Campus.

This money will also be spent on boosting manpower for new and expanding acute hospitals, specialist centres, polyclinics and community hospitals run by the three public healthcare clusters.

Additionally, part of the budget will be allocated to ongoing programmes related to the recruitment, training and retention of healthcare workers; the expansion of clinical services; and healthcare grants and financial assistance schemes such as MediShield Life and CareShield Life. 

The portion of the ministry’s budget dedicated to development – $1.38 billion – will be used to build projects such as the Woodlands Health Campus, Singapore General Hospital’s Emergency Medicine Building and Elective Care Centre, as well as IT infrastructure for new healthcare facilities and other major IT projects.

3. Ministry of Education

Projected total expenditure for FY2023: $14.6 billion

The number of students subsidised by MOE, including those in independent schools and special education schools, is projected to be 429,854 in 2023.

Over half, or $7.42 billion, of the ministry’s budget will go to educating them, and to salary revisions for educators and the gradual resumption of school building projects.

As for the six universities, a projected 87,900 graduates and undergraduates will be subsidised by MOE this year, up from the 79,000 projected for FY2022.

To train graduate manpower to support Singapore’s economic needs, and to support universities’ research efforts, $2.88 billion has been set aside.

For the projected 60,500 polytechnic students subsidised by MOE, $1.27 billion has been set aside to prepare them with industry-relevant and technical training for employment. For the projected 26,900 Institute of Technical Education students, $542.22 million has been set aside.

4. Ministry of National Development

Projected total expenditure for FY2023: $8.74 billion

Most of MND’s budget, or around 86 per cent, will go to its operating expenditure in the form of grants and capital injections for public housing, while around $1.21 billion will go to its development spending, of which $992.77 million will be set aside for public housing expenditure. 

Of this, a total of $457.17 million is being set aside to upgrade HDB precincts. This includes the Home Improvement Programme and Enhancement for Active Seniors programme ($295.75 million), various lift upgrading programmes ($92.58 million) and the Neighbourhood Renewal Programme ($68.84 million)

Around 42,800 flats are expected to come under the Home Improvement Programme, while around 56,100 flats are expected to come under the Neighbourhood Renewal Programme. 

For major infrastructure within HDB towns, a sum of $245.71 million has been set aside.

And $135.67 million will be allocated for the Selective En bloc Redevelopment Scheme this year.

From the ministry’s budget, $1.12 billion will be allocated for land-related expenditure, to make land available for Singapore’s development needs. 

5. Ministry of Home Affairs

Projected total expenditure for FY2023: $8.29 billion

Around 88 per cent, or $7.27 billion, will be allocated to operating expenditure, with the police taking up half ($3.63 billion), followed by the Immigration and Checkpoints Authority (ICA) at $1.1 billion; the Offender Management and Rehabilitation Programme, which includes prisons ($694.61 million); and civil defence ($670.06 million).

MHA will spend $1.02 billion on various development projects this year, such as ICA’s Automated Border Control System, and its new 24-hour Integrated Services Centre with self-service kiosks for members of the public to pick up documents using biometric technology.

6. Ministry of Social and Family Development

Projected total expenditure for FY2023: $4.16 billion

Almost three-quarters of MSF’s operating expenditure, or $3.03 billion, will be allocated to programmes under its Family Development Group and Early Childhood Development Agency (ECDA). 

About 94 per cent of the $983.03 million that the Family Development Group is allocated will support marriage and parenthood initiatives such as the Baby Bonus Scheme and Baby Support Grant, as well as government-supported maternity and paternity leave.

ECDA will get $2.05 billion – a 19 per cent increase from 2022’s allocation – to provide more pre-school places through the anchor operator and partner operator schemes, and to support fee cap reductions as well as higher salaries for early childhood educators in anchor and partner operator schools.

Some of the money will also go to the KidStart programme – helping low-income families with children up to age six in areas such as child development, nutrition and parent-child interaction – which will be scaled up to cover the entire island from 2023. 

The ministry’s development expenditure for FY2023 is also rising by almost one-fifth to $103.87 million, mainly due to higher expenditure in the development of the pre-school sector. 

7. Ministry of Sustainability and the Environment

Projected total expenditure for FY2023: $3.45 billion

The bulk of the ministry’s operating budget will go towards running costs, with more than half, or $1.29 billion, going to the National Environment Agency.

The NEA is in charge of maintaining high standards of public health, a clean and sustainable environment and promoting conservation, together with its partners and the community.

A $1.01 billion sum will go towards major drainage projects, such as the second phase of the Deep Tunnel Sewerage System ($513.74 million) and the proposed expansion of sewerage networks in Sengkang and Punggol ($17.02 million).

Other major works to be funded in this year’s budget are a new crematorium in Mandai ($61.64 million) and the construction of the Mount Vernon Funeral Parlour Complex ($13.58 million), as well as development works for farm sites in Lim Chu Kang and Sungei Tengah ($3.6 million).