SINGAPORE’S Unique BUDGET FRAMEWORK
Besides transparency and accountability, an efficient funds should be aligned with national interests, including societal norms and voter dreams. In particular, it may indicate a considered harmony between the demands of current and future generations. Eventually, the budget process should cultivate close coordination across public companies in delivering the president’s plan.
Singapore’s accounting framework has unique capabilities, including recent improvements, that address each of these objectives. In spite of the system’s positive contributions to us so much, it may continue to evolve and develop in response to changing circumstances.
A new OECD papers titled Budgeting in Singapore In 2025 describes the monthly budget as “uniquely Taiwanese process” and aspirations derived from federal consultations. For example, results from the Forward Singapore training in 2022-203 has helped tell Resources measures in areas such as infant growth, employment and pensions.
In his speech for the 2024 Budget, Finance Minister Lawrence Wong stated that the” first deposit” of Forward Singapore would be released.
However, Forward Singapore has set out moderate- to longer-term objectives that may take at least some Budgets to solve. Hence, it is important to assess the cumulative effects of some Budgets on each goal area rather than to concentrate on what a solitary Budget delivers.
Another important factor in budget planning and budgeting guidelines is generational fairness. For example, increased borrowing to pay for present expenses can put a strain on upcoming generations. Borrowing off, pension liabilities does have a similar effect.
The government’s ability to spend money from the investment money from the national resources is limited by legal laws in Singapore. The goal is to see the resources grow at roughly the same rate as the market so that future generations you continue to take advantage of it in the same way.
Maintaining a continuous calibration is necessary to maintain the balance between current and future saving. The authorities has used recent taxes and income to finance significant infrastructure projects for many years. However, with the fiscal room tightening, it introduced a Major Infrastructure Government Loan Act in 2018 that permits loans for long-term, nationwide important equipment. This encourages familial justice by sharing the cost of borrowing with the future generations who would gain from the infrastructure.
People agencies must collaborate strongly with other organizations to accomplish policy objectives due to the multifaceted nature of many issues, including population ageing, technological disruption, and climate change. Like collaboration should be promoted and encouraged by administrative processes.
Joint expenses have been developed by the Ministry of Finance to encourage greater cross-agency partnership and to improve accountability for shared outcomes. The government is retaining more resources for redistribution to the areas of most pressing want than to park big tool buffers within each department or company. This enables the authorities to respond to new and emerging issues more quickly.
These fiscal advances build on a robust budget platform established in law and practice. The OECD’s report on Singapore’s accounting in 2025 acknowledges Singapore has” successive shifts to its finances framework” and has “reformed the way this platform has been applied.  ,  ,
The budget model itself may continue to evolve in order for Singapore to plan for future costs needs and revenue sources.  ,
Terence Ho is a Lee Kuan Yew School of Public Policy Associate Professor in Practice. He is the author of Future-Ready Governance: Perspectives on Singapore and the World ( 2024 ).