1) The document discusses effective budget management strategies used by the Singapore government, including focusing on long-term priorities, ensuring fiscal sustainability, and preparing for contingencies. 2) Key aspects of Singapore's budgeting approach are establishing medium-term block budgets for ministries, conducting regular reviews of outcomes, and reinvesting a portion of budgets to promote innovation. 3) Singapore takes a long-term view in its fiscal planning and investment in areas like education, healthcare, and infrastructure to support continued economic growth amid future challenges around immigration, aging population, and competition.

1. EFFECTIVE BUDGET
MANAGEMENT
DEVADAS
KRISHNADAS
Copyrighted to Future-Moves Group Pte Ltd (Singapore). Not to be reproduced or referenced without permission.

2. Fiscal Leadership
2 3
Effective
Budget
Management
Focus on the
Long Term
1
SCOPE

3. FISCAL POLICY IN
SINGAPORE
FISCAL
LEADERSHIP

4. FISCAL STORY GIVES
PURPOSEANDMEANING
TO BUDGETS

5. GIVE
DIRECTION
Where
should the
country go?
1
CLARIFY
PRINCIPLES
What are the
guiding
principles?
2
DECIDE ON
PRIORITIES
Essential
over
Important
3
FOCUS ON
THE
FUTURE
Long-term
4
ENSURE
SUSTAINABILITY
Avoid kicking the
can/
Burying mines
5
Effective Fiscal Leadership
PREPARE FOR
CONTIGENCIES
Avoid wishful
thinking
6
BE
COMMITTED
Staying the
course
7

6. 5
(through social transfers)
4
Fiscal Policy
1
BALANCED
BUDGET
CUSHION
ECONOMY
(in downturn)
2
PRO-COMMUNITY
3
CREATE
COMPETITIVE TAX
ENVIRONMENT
BUILD
LONG-TERM
COMPETITIVENESS
(Invest in R&D,
education,
Infrastructure)
(over medium term)
(Support jobs, businesses, investments)

7. EFFECTIVE
BUDGET MANAGEMENT

8. DEC: Finalisation of Budget
JAN: Cabinet’s approval for the
budget
Effective
Government
Sustainable
Economic
Growth
SUSTAINABLE
FEB/MAR: Parliament and
President’s approval for the budget
Secure and
Influential
Singapore
World-Class
Environment and
Infrastructure
ECONOMIC GROWTH
Strong
Families,
Cohesive
Society
Robust
Social
Security
APR/JUN: Preparation
SEP-OCT:
Administrative
Timelines
JUN-NOV:
Engagement with Ministries/
Agencies
Ensuring Vertical and Horizontal Coordination
WHOLE-OF-GOVERNMENT
STRATEGIC OUTCOMES
BUDGET CYCLE

9. The biennial SPOR
takes stock of how
Singapore has fared in
key areas of national
interest
Promoting Accountability
SINGAPORE PUBLIC SECTOR OUTCOMES
REVIEW (SPOR)

10. GROW MINISTRIES’
BY A FACTOR
OF 40% BUDGET
THE sGDP
GROWTH RATE
The Ministry of Finance and Individual Ministries
agree to a 3-5 YEAR BLOCK OF FINANCING which
relates to priorities decided upon by Cabinet
Building in Flexibility
BLOCK BUDGETING
MINISTRIES CAN
MANAGE THEIR CASH
FLOW BETTER BY:
1. Borrowing from
future year(s)
• Advances
2. Saving to subsequent
year(s)
• Carry Forward at
Total Budget Level
• Rollover at
Operating Budget
Level

11. 1% of
Ministry A’s
Block
Budget
1% of
Ministry B’s
Block
Budget
REINVESTMENT FUND
Promoting Rolling Innovation
1% of
Ministry C’s
Block
COMPETITIVE BIDDING Budget
CROSS AGENCY
PRIORITY AREAS
Managed INNOVATION by the Ministry of Finance
COLLABORATION REINVESTMENT FUND

12. Focusing
on the Long Term

13. SINGAPORE’S EXPENDITURE
Investing in the Basics
14
12
10
8
6
4
2
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
BILLION (SGD)
YEAR
Education Health Public Housing

14. Thinking JURON GBi gI,S TLaAkinNgD Risks
From an initial area of less
than 10 square kilometers to
today’s 32 square kilometers
1970s: SOLUTION: Petroleum Reclaim industry seven
took
off smaller in Singapore
islands to form one
large island
1980s: Industrial land became
scarce
TODAY: Jurong Island is at the heart of
Singapore’s energy and chemicals industry.
It is home to almost 100 leading global
petroleum, petrochemicals and specialty
chemicals companies

15. Today, Marina Bay includes a variety of uses,
including commercial, residential, hotel and
entertainment. This ensures it remains a vibrant
centerpiece of Singapore around the clock.
It allowed for the seamless extension of the
central Business district and supports Singapore’s
growth as a global business and financial hub.
MARINA BAY The Marina Bay area was reclaimed during the
1970s and 1980s in anticipation of the need to
grow the city center in the future.

16. Overall revenue
growth not likely to
keep • pace Immigration with
and strain
expenditure on infrastructure
growth
FISCAL PRUDENCE REMAINS
• Ageing population and
KEY
the impact on health care
and adequacy of
retirement finances
• Widening income gap
and the need to
strengthen social safety
net
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Long-term Challenges
• Maturing economy and
lower growth trajectory
• Intensifying Economic
Competition which
impacts trade and
economic growth
-
Operating Revenue ($'m) Total Revenue ($'m)
Operating & Development Expenditure ($'m) Total Expenditure ($'m)
RISK OF
DECREASING
REVENUE
PRESSURE OF
INCREASING
EXPENDITURE