Singapore Matches More Problems With More Money in Budget
- Finance minister announces increase in GST in coming years
- Government faces spending pressures as population ages rapidly
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Singapore’s budget on Monday was all about boosting government revenue through higher taxes in order to pay for rising spending needs.
While the city state has substantial reserves that it draws on to help fund the budget, that’s not a long-term solution for a fiscally conservative government like Singapore’s. Finance Minister Heng Swee Keat said authorities must act prudently as the economy matures and the population ages, outlining a range of tax increases, including on property, consumption and online services, such as video streaming.