Fun Fact: Singapore's government expenditure has grown remarkably from just S$1.2 billion in 1970 to over S$100 billion by 2025 - that's an 83-fold increase! What's fascinating is that despite this massive growth, Singapore maintains one of the world's lowest debt-to-GDP ratios at around 130% (mostly domestic debt), while simultaneously building the world's largest sovereign wealth fund reserves per capita.
The government's unique approach of running budget surpluses in most years and investing proceeds through GIC and Temasek has created a financial fortress that allows for counter-cyclical spending during crises, like the unprecedented S$100 billion COVID-19 support packages that helped Singapore emerge stronger from the pandemic.
The intersection between the revenue and expenditure lines reveals Singapore's fiscal health. When revenue exceeds expenditure, the government records a budget surplus, enabling strategic investments and reserves building. Conversely, when expenditure surpasses revenue, it results in a budget deficit, requiring careful fiscal management and potentially drawing from national reserves to fund essential services and infrastructure development.
Do You Know? Singapore's foreign reserves have grown from just S$4.2 billion in 1972 to over S$515 billion by 2025 - representing one of the world's largest reserves relative to GDP! These reserves, managed by the Monetary Authority of Singapore (MAS), serve as a crucial buffer against external shocks and help maintain Singapore dollar stability. The dramatic growth trajectory showcases Singapore's prudent monetary policy and its position as a global financial hub.
As of 2024, the total reserves are conservatively estimated at S$2.5 trillion (US$1.87 trillion), based on publicly available data from GIC, Temasek, MAS and CPF, among others. Many analysts believe that the reserves are substantially larger than publicly acknowledged. The Ministry of Finance keeps the full details of the reserves private so as to prevent currency speculation attacks on the Singapore dollar.
In other words, our establishment really has a lot of money, but without prudent financial policy, no matter how wealthy the administration is, financial mismanagement is never far away. The intersection between fiscal discipline and reserve accumulation reveals Singapore's strategic approach to long-term economic stability and resilience against global uncertainties.