The 2008 Singapore budget speech dealt with a number of factors ranging from, inflation tackling strategies to the acts meant to alter adverse conditions. The governmental acts from the 2008 fiscal year were indicative of these changes.
The Ministry of Finance proposed and documented the Singapore budget then gave a speech on it. His speech dealt with various spheres of the economy from the economic overview for the year 2008 to the various policies/strategies embraced by the government.
The following points were spoken of in the budget speech of 2008:
The Singapore Economy in the fiscal year 2008:
The speech began by expressing concern over the prevailing economic conditions in the United States of America. Even though the recession may be of a diluted nature, Asian nations are bound to be impacted. Amidst all this, the Singapore economy anticipated a growth in their economy of 4% to 6%. Although this figure is lower than the 2007 fiscal year, the overall economy was ascertained to be strong. The Finance Minister did not rule out however a negative ripple effect in the markets of Singapore, should conditions in USA worsen. To this the Finance Minister expressed that the country has to be very cautious.
Inflation in the Singapore:
It was found that inflation in Singapore was at 2% in the year 2007. It is thought that inflation in 2008 is likely to be between 4.5% and 5.5%. The speech also suggested some possible solutions.
Suggested solutions for inflation include:
Moderating “imported inflation” by adopting an exchange rate policy pertaining to Singaporean dollar.
Diversifying sources of food products to alleviate the impact of imported food price increases.
Various policies enacted by the government to facilitate ownership of homes for the Singaporean population.
Government assistance, which is extended to the people who do not have a sound standard of living in the country. The government has proposed many programs and projects in this regard.
Helping people to deal with rising inflation in the global market by making the economy competitive thereby resulting in its healthy growth.
Tax issues discussed in the speech:
While the personal income tax category was untouched, other areas of taxation faced alterations. These changes were meant to lead towards positive gradation of the economy.
2008 budget measures centered on the following focus points:
Providing optimum opportunities in the sphere of training and education.
Facilitating “innovative enterprises” growth in the country.
Adopting tax policies in order to maintain competitiveness.
Aiding in economic growth that is to prove active and prospering.