Budget 2026: Less set aside for CDC vouchers, more to strengthen economy’s resilience

SINGAPORE - Prime Minister Lawrence Wong on Feb 12 unveiled an estimated $154.7 billion Budget for 2026 to support Singaporeans and ensure economic progress in a time of global uncertainty.

Budget 2026 is estimated to be 8 per cent, or $11.4 billion, higher than the revised $143.3 billion that was rolled out in fiscal year (FY) 2025.

The Government expects to collect $134.8 billion in operating revenue in FY2026 to fund this Budget – an increase of 3 per cent, or $3.9 billion, from the revised $130.9 billion collected in FY2025.

Net Investment Returns Contribution (NIRC), a portion of investment returns from the reserves that can be used to fund the Budget, is estimated to be $28.5 billion.

At $154.7 billion, Budget 2026 is estimated to comprise 18.4 per cent of gross domestic product (GDP). In FY2025, it stood at $143.3 billion, or 17.9 per cent of GDP.

Government ministries are expected to spend a total of $137.3 billion in 2026, with the Ministry of Trade and Industry projected to see the largest increase in expenditure from FY2025 as it rolls out initiatives to increase the Republic’s economic competitiveness.

The Ministry of Health will continue to see increases in expenditure as it grows public healthcare institutions in the face of an ageing population.

The Ministry of Home Affairs will also spend more in support of projects such as Woodlands Checkpoint and the Johor Bahru-Singapore Rapid Transit System Link.

Meanwhile, the Ministry of Education will increase recruitment of educators and improve the quality of education and school facilities, among other initiatives.

However, special transfers, including top-ups to statutory and trust funds, will decrease from $23.4 billion in FY2025 to $21.7 billion.

The amount allocated to CDC vouchers, which fall under special transfers, is expected to drop over the same period, from $1.1 billion to $700 million.

With that, every Singaporean household will receive $500 in CDC vouchers.

Meanwhile, the capitalisation of nationally significant infrastructure under SINGA, covering projects like the Cross Island and Jurong Region MRT lines, is set to come in around $5 billion, consistent with what it was in FY2025.

SINGA refers to the Significant Infrastructure Government Loan Act, which allows the Government to borrow up to $90 billion to pay for infrastructure that will last for at least 50 years, so as to distribute fiscal responsibility more equitably across generations.

The $154.7 billion Budget comprises total ministry expenditure, special transfers and SINGA bonds interest costs and loans, minus the capitalisation of nationally significant infrastructure.

The largest source of revenue will continue to come from corporate income tax. At an estimated $37.8 billion, it will account for 28 per cent of operating revenue.

Personal income tax is expected to generate $21.8 billion in revenue.

An estimated $2.8 billion in motor vehicle taxes will be collected, which is 17.2 per cent higher than in FY2025.

Vehicle quota premiums will contribute $9.4 billion in revenue, reflecting an 8.8 per cent increase.

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