Singapore's cautious budget approach is a vital lifeline

President Tharman Shanmugaratnam of Singapore has approved the government’s spending plans for the next financial year. He described the country's careful budgeting as a "lifeline" in today's uncertain world. In a recent Facebook post, Mr. Tharman emphasized the importance of planning for the future while addressing current issues like the rising cost of living. He believes that being prepared for potential problems is essential for staying optimistic. Over the years, Singapore's conservative budgeting approach has come under scrutiny. Critics argue that it could be too cautious. However, Mr. Tharman insists that this strategy is now crucial amid global insecurity. During February's Budget debates, the Leader of the Opposition, Pritam Singh, criticized the government's revenue forecasts. For the 2024 fiscal year, the government collected more than expected, with revenues rising by 7.3 percent. Prime Minister Lawrence Wong defended the government’s record, stating that forecasts have generally been accurate. Mr. Tharman noted that economic and geopolitical disruptions are now expected. He pointed to the potential for future pandemics and the looming threat of climate change, which he said is reaching critical points. He underlined that Singapore is fortunate to be prepared for these challenges.