Singapore’s approach of fiscal prudence provides buffer, assurance in turbulent world: Indranee
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Leader of the House Indranee Rajah was speaking after Parliament unanimously passed a record $154.7 billion spending plan.
ST PHOTO: SHINTARO TAY
- Singapore's fiscal prudence, validated over time, provides assurance amid global instability like the Middle East conflict, says Indranee Rajah.
- Budget 2026 projects a $15.1 billion surplus due to economic growth, but global uncertainty highlights the need for fiscal buffers.
- Key initiatives include the National AI Council and addressing the low Total Fertility Rate of 0.87 with societal support.
AI generated
SINGAPORE – Singapore’s approach of fiscal prudence provides buffer and assurance in a world rocked by developments like the Middle East conflict, said Leader of the House Indranee Rajah on March 6.
Speaking after Parliament unanimously passed a record $154.7 billion spending plan, Ms Indranee noted that some had asked if the Government has been too conservative after it projected a healthy surplus for the 2025 financial year.
In his Budget statement an expected surplus of $15.1 billion
The surplus drew scrutiny
Ms Indranee said that while PM Wong’s speech on Feb 12 was delivered against a backdrop of a gross domestic product growth of 5 per cent for Singapore
This includes the US Supreme Court striking down President Donald Trump’s tariffs doubling down on the duties
On Feb 28, the US and Israel launched strikes on Iran
The overall climate of uncertainty could affect the outlook for trade and investment, energy prices and the cost of living, she said.
“As a small and open economy, Singapore will feel the knock-on impact keenly,” she added.
“Viewed in the light of these changed circumstances, our surplus is less about marksmanship and a whole lot more about assurance and quiet confidence. We have the ability to do more for Singaporeans with ballast and buffer against potential turbulence.”
Ms Indranee said Singapore’s approach of fiscal prudence has been validated “time and time again”.
She cited how Budget 2020 was delivered amid a calm global economic environment, but within a month, the Covid-19 pandemic emerged and shut down the global economy.
The Government ended up delivering another four Budgets and drawing down about $40 billion from past reserves, she noted.
She also highlighted Budget 2022, which came just before the Russia-Ukraine war that added to energy and supply chain issues and increased inflation.
Said Ms Indranee: “In all our Budgets, we prepare for the best but we also plan in case of the worst. History is a hard taskmaster and we must not ignore its lessons. Our reserves, and our surpluses, are things to be grateful for.”
In a world rocked by turbulence and change, Singapore stands out as a beacon of safety, security and stability, she said.
This is the result of successive Budgets anchored on fiscal prudence, forward planning and catalysing new ways to catch the winds of change, she added.
Budget 2026, she said, is the Government’s action plan to enable Singaporeans to navigate a world that has become more contested, more fragmented, and ultimately more dangerous.
She said artificial intelligence is a key feature of the Budget a National Artificial Intelligence Council chaired by PM Wong
Ms Indranee also highlighted how the Budget put a spotlight on the country’s total fertility rate, which has dropped to a historic low of 0.87
She is chairing a work group
“As we begin this important work, we will take into account the many helpful ideas and suggestions from members on both sides of the House on what we can do to provide more support for families and couples who aspire to become parents,” she said.
Ms Indranee noted that over the span of nine days, there was a robust debate, during which 68 MPs spoke for 2½ days in the debate on the Budget statement.
This was the highest number in recent Budgets, with about 21 hours of debate. The debate over the various ministries’ budgets spanned six days and almost 55 hours. MPs filed 425 “cuts”, which are short speeches containing questions and suggestions.
