Why 2013 was better than expected for the Singaporean taxman

All thanks to an impressive 4% economic growth.

According to CIMB, with the Singapore economy expanding by about 4% last year vs. 2012’s 1.3%, the government is likely to report operating revenue of about S$56.6bn (+1.3%), stronger than its year-ago estimate of S$55.0bn (-1.4%). 

With total spending (operating and development) projected to reach S$53.7bn (+9.6%) vs. its year-ago estimate of S$53.4bn (+9.0%), an operating fiscal balance of S$2.8bn (0.8% of GDP) can be expected for FY13 (vs. its year-ago forecast of S$1.6bn or 0.4% of GDP).

Here's more from CIMB:

After taking into account NIR and Special Transfers, there could be a budget surplus of about S$3.6bn (1% GDP) vs. its projected surplus of S$2.4bn (0.7% of GDP).

As the economy is expected to grow a slower 2-4% this year, we expect the government to project a lower operating fiscal surplus of S$0.5bn (0.1% of GDP).

This is also partly due to increased spending for operational and developmental needs. After taking into account NIR and Special Transfers, there could be a balanced budget for FY14.