How important is it?
According to DBS, the upcoming budget is expected to complement the recently announced Population White Paper. The Paper charts out the roadmap for Singapore’s demographic, social and economic policy directions over the next two decades.
GDP growth rate till 2020 is expected to average 3%-5% but will likely slow to about 2%-3% in the subsequent decade. Singapore’s population will likely reach
6.5 to 6.9 million by 2030.
Here's more from DBS:
More importantly, the Paper spells out the demographic challenges facing the economy, the need to ensure a dynamic economy and to create ample opportunities for Singaporeans, as well as the steps to be taken to cater for a larger population.
To sustain longer-term growth given an aging population and the moderation in labour growth, productivity improvement and fostering inclusive growth will continue to take centre-stage in this budget.
In addition, concrete medium-term measures to improve public infrastructure will also be introduced to support the recently announced Land Use Plan. These will help ease some of the current bottlenecks as well as prepare for a larger population.
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