Here’s what to expect from the Singapore budget for 2023

Rising inflation and layoffs are among the top concerns of Singaporeans and are expected to be addressed in Singapore’s budget for 2023.

The budget will be presented by Deputy Prime Minister and Finance Minister Lawrence Wong on Tuesday at 3:30 pm in Parliament.

The Singapore budget introduced a series of measures to support Singaporeans for each financial year, commencing on 1 April and ending on 31 March of the following year.

Vuong said The 2023 budget will be his “Valentine gift for everyone”, at the launch of the Community Development Council voucher program on January 3.

He also promised measures to help Singaporeans – especially the more vulnerable and lower income groups – cope with inflation and rising prices.

In 2022, the government implemented a Guarantee package worth S$6.6 billion ($4.9 billion) to lessen the impact of the goods and services tax hike through cash payments, CDC vouchers for daily essentials, utility discounts, and MediSave recharges.

Government topped the pack with an additional S$1.4 billion, bringing the total to S$8 billion. This year’s budget announcement is expected to include more details on the improvements.

Rising inflation and rising GST will also affect businesses, especially SMEs, that are unable to pass higher costs on to customers, Deloitte wrote in its report. Budget Response Report 2023. As a result, businesses can expect more support to cope with these rising budget costs.

The S$1.5 billion support package announced on June 21 offering higher grants for the progressive salary credit program and energy efficiency subsidy, providing up to 70% assistance to local small and medium businesses struggling with face rising energy prices.

It also includes improve corporate financial mechanismincrease the maximum loan amount from S$5 million to S$10 million for the period from 1 July 2022 to 31 March 2023.

Singapore offers tax incentives, among other policy tools, to attract foreign investment and established companies to operate here.

City-state is exploring a minimum effective tax rate of 15% for multinational companies regardless of where the revenue is earned, to prevent these companies from transferring profits and tax revenue to low-tax countries.

This would make such tax incentives less attractive.

“Singapore may need to change its traditional tax incentives and consider other measures to promote investment. Therefore, Deloitte proposes to adjust existing incentives and subsidies to encourage anchor companies. operates in Singapore,” the company report said.

lay off grew to 1,300 in Q3 2022, up from 830 in Q2, largely due to technology cuts. Preliminary data estimates there could be 3,000 layoffs in the fourth quarter of 2022.

The 2023 budget could include unemployment support for these laid-off workers.

Previously, the Covid-19 recovery allowance has been implemented to provide one-time financial assistance to people who have lost their jobs or lost income due to the pandemic.

Low Hwee Chua, regional managing partner for tax & legal at Deloitte Singapore and South East Asia, said: “Securing Singapore’s future while addressing short-term challenges is a recurring theme in Singapore. per Budget. This year’s budget is no different.” Deloitte’s 2023 budget response report.

“We hope the Singapore government will continue to attract our fair share of investments and create decent jobs for all Singaporeans, even as global investment competition intensify. “

He added: “We also look forward to the Singapore government to assist families/households and workers/businesses to identify and seize new opportunities in this increasingly volatile and complex world, right now. even in the face of greater uncertainty and volatility.”