Singapore can expect spending to rise to 20% of GDP by 2030: PM Wong

Last Updated on February 19, 2025 6:36 am

Wong says he expects to end with a surplus of $6.4 billion or 0.9% of Singapore’s GDP.

Prime Minister Lawrence Wong warned that Singapore’s expenditure will continue to increase due to its need to invest more in workers and to better support a rapidly ageing population.

At Budget 2025 on Feb 18, Wong noted that government spending had risen steadily over the years from 15% of the country’s GDP to 18%. Based on historical trends, Singapore can expect its spending to increase to 20% of its GDP by 2030.

There may also be added pressure to raise the country’s spending possibly at a pace that exceeds previous increases, Wong adds.

In FY2024, however, Wong, who double hats as Singapore’s Finance Minister, says he expects to end with a surplus of $6.4 billion or 0.9% of Singapore’s GDP.

He expects Singapore to be in a similar fiscal position of $6.8 billion, or 0.9% of Singapore’s GDP, in FY2025.

Follow the market’s reaction to Budget 2025 on The Edge Singapore.