SG Budget 2017: 2% downward adjustment to budget caps of all ministries

THE government will apply a permanent 2 per cent downward adjustment to the budget caps of all ministries and organs of state from fiscal 2017, to ensure prudent spending, Finance Minister Heng Swee Keat said on Monday.

"With our spending needs increasing, the government must continue to spend judiciously, emphasise value-for-money and drive innovation in delivery," he said. "We can do better - and more - with less."

For four ministries serving security needs, or are significantly expanding their services - Home Affairs, Defence, Health and Transport - the 2 per cent adjustment will be phased in over fiscal year (FY) 2017 and FY2018.

Some of the funds will be used for cross-agency projects that deliver value to citizens and businesses, such as initiatives by the Municipal Services Office.