Budget 2023: Singapore expects second straight deficit, narrowing to S$0.4b in FY23

• Budget’s S$10.2 billion basic deficit reflects expansionary stance
• Government also plans to reduce size of the Contingencies Funds via a Constitutional amendment

THE Budget for the 2023 financial year is expected to run Singapore’s second consecutive deficit as the government shifts from dealing with the pandemic to addressing concerns about the cost of living and global uncertainties.

It also marks the sixth planned deficit in consecutive years – with the last planned surplus being in FY2017.

This is as FY2021’s actual fiscal position recorded a S$1.9 billion surplus, rather than the revised estimate of a S$5 billion deficit that was previously reported.