Budget 2016 is an expansionary fiscal budget for Singapore. Total government expenditure for 2016 will be raised by 7.3% from 2015 to $73.4 billion. But this alone is not going to lift Singapore from slow economic growth this year.
The major components of Gross Domestic Product (GDP) include domestic consumptions, exports, government expenditure and fixed capital formation.
To give an idea of each component in contributing to GDP, I used the table below taken from Singapore DOS.
|Expenditure On GDP At Current Market Prices in 2015|
|Types of Expenditure||$Million||Percentage|
|Private Consumption Expenditure||147,579.90||36.7%|
|Government Consumption Expenditure||41,851.40||10.4%|
|Gross Fixed Capital Formation||102,670.60||25.5%|
|Changes In Inventories||3,136||0.8%|
|Net Exports Of Goods And Services||108,152||26.9%|
|Total Expenditure On GDP||402,457.90||100.00%|
Government consumption expenditure is just 10.4% of total GDP in 2015. Net Exports of goods and services was 26.9%. Export is a major component. If exports were to decline in 2016, Singapore GDP will decline.
Oil export was about 24% of total merchandise exports, impact on oil export will also slow down Singapore economic growth.
To sustain good economic growth, export plays a significant part in Singapore. This is still a concern.
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