Singapore’s special transfers expenditure: a strategic fiscal approach to resource allocation

SPECIAL transfers expenditure has become a more prominent part of Singapore’s Budget in recent years. Its share of spending rose from an annual average of 2 per cent before the Covid-19 pandemic to more than 3 per cent in the period afterwards.

Yet, the significance of this trend lies not in its size. Special transfers expenditure has evolved into a key fiscal instrument – designed to respond to short-term pressures and advance long-term socio-economic priorities.

Understanding how this mechanism works offers important lessons for Asean+3 economies navigating similar structural challenges.