The upcoming Budget 2023 on Feb 14 – Singapore’s first post-pandemic Budget – will bring longer-term challenges into sharper focus. Recent moves like the GST hike will help close the funding gap, but they may not be enough, say Coface economists Bernard Aw and Eve Barre.
The Ministry of Finance said on Wednesday (Feb 8) that government spending could exceed 20 per cent of gross domestic product by 2030, with most of the increase driven by healthcare expenditure. In Singapore, the share of population aged 65 and above is expected to reach 23.8 per cent by 2030.
