--- title: "Singapore expects smaller S$8.5 billion surplus in FY2026" description: "Singapore anticipates a fiscal surplus of S$8.5 billion for FY2026, down from S$15.1 billion in FY2025. The surplus is attributed to net investment returns, despite a primary deficit of S$2.6 billion." type: "news" locale: "en" url: "https://longbridge.com/en/news/275728923.md" published_at: "2026-02-12T09:02:00.000Z" --- # Singapore expects smaller S$8.5 billion surplus in FY2026 > Singapore anticipates a fiscal surplus of S$8.5 billion for FY2026, down from S$15.1 billion in FY2025. The surplus is attributed to net investment returns, despite a primary deficit of S$2.6 billion. Operating revenue is projected to rise to S$134.8 billion, driven by corporate income tax, while total expenditure is expected to increase by 10.3% to S$137.3 billion. Key spending increases are noted in the Ministry of Trade and Industry and the Ministry of Health. The overall fiscal surplus, including infrastructure loans, is projected at S$8.6 billion. ***Follow The Business Times’ live coverage of Singapore’s Budget 2026*** ***here******.*** \[SINGAPORE\] The Republic expects a fiscal surplus of S$8.5 billion or 1 per cent of gross domestic product (GDP) in its first Budget of the new government term, with the net investment returns contribution (NIRC) more than making up for a primary deficit. This is smaller than FY2025’s higher-than-expected S$15.1 billion surplus, but in line with economists’ expectations of a third consecutive planned surplus. “Our approach remains to keep the budget balanced over time, and across the ups and downs of the economic cycle,” said Finance Minister Lawrence Wong in his Budget speech on Thursday (Feb 12). Both operating revenue and total expenditure are expected to rise in FY2026, though the rise in spending will outstrip that of takings. Operating revenue is estimated at S$134.8 billion, 3 per cent higher than FY2025’s revised S$130.9 billion figure. Corporate income tax remains the biggest driver at S$37.8 billion, up S$2.5 billion or 7.2 per cent from the revised FY2025 figure. Collections are also up for major components such as personal income tax, goods and services tax and vehicle quota premiums. In percentage terms, the largest rises were for motor vehicle taxes – up 17.2 per cent to S$2.8 billion – and vehicle quota premiums, up 8.8 per cent to S$9.4 billion. Revenue is expected to fall for just three categories: statutory boards’ contributions; fees and charges, excluding vehicle quota premiums; and “other taxes”, comprising the land betterment charge and annual tonnage tax. The latter sees the largest estimated fall of 59 per cent, to S$1.6 billion. ## Higher spending Total expenditure, however, is expected to rise by 10.3 per cent to S$137.3 billion, or 16.3 per cent of GDP. Driving this increase is the Ministry of Trade and Industry, whose outlay is expected to rise by S$4.5 billion – or 68.5 per cent – to S$11.1 billion. This is on the back of initiatives to enhance Singapore’s economic competitiveness in an uncertain global environment. The second biggest bump comes from the Ministry of Health, with its spending set to rise by S$2.1 billion or 10.4 per cent to S$22.5 billion. This is due to increased subvention to public healthcare institutions; enhancement of long-term care subsidies and schemes; new healthcare facilities; and the Next Generation Electronic Medical Record system. Also seeing a major rise is the Ministry of Home Affairs’ budget, up S$2 billion or 21 per cent to S$11.7 billion. This is due to the progress of projects such as the Woodlands Checkpoint and Johor Bahru-Singapore Rapid Transit System Link. and higher grants to the Home Team Science & Technology Agency. The Ministry of Defence continues to have the biggest individual ministry budget at S$24.9 billion. In his Budget speech, PM Wong noted that Singapore expects “overall security-related expenditures to rise in the coming years”. ## Closing the deficit The difference between operating revenue and total expenditure yields a primary deficit of S$2.6 billion for FY2026. After special transfers, this widens to a basic deficit of S$5.4 billion. But S$28.5 billion in NIRC – up S$0.95 billion or 3.4 per cent from FY2025 – helps to take Singapore to an overall budget surplus of S$4.2 billion. The final overall fiscal surplus of S$8.6 billion also takes into account the Significant Infrastructure Government Loan Act, under which the capitalisation of nationally significant infrastructure is projected to be S$5.02 billion. The fiscal impulse, which measures whether the government is injecting more or less into the economy compared to the previous year, is projected to be mildly expansionary at 0.6 per cent of GDP. **For more of BT’s Budget 2026 coverage, go to** ***bt.sg/budget26*** ### Related Stocks - [ES3.SG - STI ETF](https://longbridge.com/en/quote/ES3.SG.md) - [GAB.SG - Amova STI ETF SA](https://longbridge.com/en/quote/GAB.SG.md) - [STI.SG - FTSE Straits Times Index](https://longbridge.com/en/quote/STI.SG.md) - [G3B.SG - Nikko AM STI ETF](https://longbridge.com/en/quote/G3B.SG.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 2026 年預算中，跨國公司的税率將提高至 15% | 新加坡計劃將大型跨國公司的有效税率提高至 15%，作為 BEPS 第二支柱實施的一部分。總理黃循財於 2 月 12 日宣佈此消息，預計從 2027 財年開始，企業税收將增加。政府計劃增加在醫療保健、基礎設施和對外關係方面的支出，重點是促進投 | [Link](https://longbridge.com/en/news/275733837.md) | | 新加坡將太陽能部署目標提高至 2030 年的 3GWP | 新加坡已將其太陽能部署目標提高至 2030 年前達到 3 吉瓦峯值（GWP），超出了之前設定的 2 GWP 目標，提前實現。財政部長黃循財在預算演講中宣佈了這一消息。政府旨在最大化太陽能部署，並正在探索低碳電力進口、氫能、地熱能和核能。新加 | [Link](https://longbridge.com/en/news/275727094.md) | | 2026 年預算：新委員會將負責監督技能、職業和工作匹配 | 新加坡政府正在將 SkillsFuture Singapore 和 Workforce Singapore 合併為一個新的法定機構，以增強技能培訓、職業指導和就業匹配服務。總理黃循財在其 2026 年預算演講中宣佈了這一消息，強調了對勞動力 | [Link](https://longbridge.com/en/news/275738651.md) | | 隨着需求的激增，新加坡銀行提供更多私人市場的投資機會 | 新加坡的銀行計劃在 2026 年擴大其私人市場產品，以應對需求的顯著增長。根據 Hamilton Lane 發佈的 2026 年全球私人財富調查，88% 的私人財富專業人士打算增加對私人市場的投資比例，較去年 56% 的比例有所上升。這些投 | [Link](https://longbridge.com/en/news/275222547.md) | | 政府承諾在技術變革和不確定性增加的背景下提供更多支持給工人 | 新加坡政府在總理黃循財的領導下，正在加強對面臨職業轉型和技能發展的工人的支持，以應對技術變革和經濟不確定性。儘管勞動力市場狀況良好，且預計 2026 年的 GDP 增長率為 2% 至 4%，但人們對就業安全的擔憂依然存在，尤其是在人工智能崛 | [Link](https://longbridge.com/en/news/275690161.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.