Of adequacy and adaptability

IN sharp contrast to most developed economies, financial adequacy, or rather the lack thereof, neither daunts nor defines Singapore's Budget. The fact is, an enviable surplus cushion in the ballpark of S$11 billion-12 billion accumulated since 2011 comfortably offsets a S$6.7 billion budgeted deficit for an exceptionally generous "SG50 Budget". Crucially, this does not flout the constitutional requirement for a balanced budget for the government's elected term.

Admittedly, the suite of cash disbursements, expansive social redistribution and business relief may be mistaken for welfare or a populist slant. But willingness to fund with past surpluses is a necessary and evolving response to demographic, productivity and income gap realities.

And to be clear, there is no tectonic shift from a fundamentally sustainable fiscal trajectory. Emphasis on judicious spending and pre-emptive measures to ensure revenue adequacy in anticipation of rising expenditures underscore an unwavering commitment to fiscal prudence.