Budget 2025, to be delivered by Prime Minister and Finance Minister Lawrence Wong on 18 February, will be the last before the General Election (due by November 2025) and will coincide with Singapore’s 60th anniversary. The government is expected to draw down most of the accumulated S$6.7 billion surplus, leading to a projected fiscal deficit of S$6 billion (0.8% of GDP) for the electoral term (FY2021-25). Stronger-than-expected fiscal revenue in FY2024, driven by higher GST (+25%), corporate tax (+6.2%), and personal income tax (+9.4%), contributed to the surplus.
Key Measures Expected in Budget 2025
1. Cost of Living Support & SkillsFuture Enhancements
A generous “SG60” package is anticipated, including cash payouts, CDC vouchers, U-Save rebates, and Medisave top-ups to help Singaporeans cope with inflation. A higher personal income tax rebate is likely, along with targeted support for essential expenses like childcare, education, and healthcare. There may be top-ups to Child Development (CDA) and Edusave Accounts, as well as new support schemes for large families and households (those supporting both children and elderly parents). SkillsFuture enhancements are expected to focus on younger Singaporeans and upskilling programs.
2. Business Support & Competitiveness Measures
Businesses could benefit from corporate and property tax rebates, extensions of schemes to defray manpower costs (e.g., Progressive Wage Credit Scheme, Senior Employment Credit), and more flexible foreign work pass approvals. The government may relax Dependency Ratio Ceilings (DRC) for retailers and F&B businesses, which faced contractions in 2Q-4Q 2024. Funding caps for grants like the Productivity Solutions Grant and Enterprise Development Grant could be raised, particularly for AI adoption and sustainability initiatives. JS-SEZ incentives may be expanded to encourage investments in Singapore and the Special Economic Zone.
3. No New Property Cooling Measures or Wealth Taxes
Budget 2025 is unlikely to introduce new property cooling measures or wealth taxes. Instead, the government will monitor housing supply and potential price stabilization. En bloc sales rules may be relaxed to rejuvenate older developments and increase private housing supply.
Macroeconomic Outlook
Singapore’s GDP growth is forecasted at 2.6% in 2025 and 2.3% in 2026, recovering from an estimated 1.1% in 2024. Inflation is expected to ease, with core CPI falling to 2.7% in 2025 and 1.4% in 2026. Monetary policy adjustments will likely reflect these trends.
Singapore Budget
Budget 2025, shaped by pre-election considerations and SG60 celebrations, will focus on cost-of-living relief, business competitiveness, and long-term economic resilience. PM Wong has highlighted four key themes: economic strategies, job opportunities, life-stage support, and national unity—reinforcing Singapore’s commitment to inclusive growth.