The Singapore Enconomy and Gdp

Introduction

The Singapore government has played a crucial role in sustaining economic growth over the last 50 years. The country owes much of its prosperity to its honest and pragmatic government, creating a conducive open business environment with one of the lowest corruption rate in the world. This makes Singapore a safe haven and favourable country for foreign investors, hence, contributing to the success of Singapore’s economic performance, holding one of the highest per-capita GDP in the world.

The Singapore Enconomy

The economic performance of the country is measured by its Gross Domestic Product (GDP).

Our GDP growth rate for Q3 of 2015 is 1.90% at 307.87 Billion USD , as compared with 2014.

[pic 1]

(Trading Economics, 2015)

The 3 main contributing factors to Singapore GDP are mainly Private Consumption Expenditure with 37.2 % followed by 25.7 % of Gross Fixed Formation followed by 24.7 % of Net Export of Goods and Services. The following section we will discuss more of the fiscal and monetary policy that have govern our economy over the years

[pic 2]

(Singapore Statistics, 2015)

Singapore Fiscal Policy

The long-term government objective of budgetary policy are

1. Support and promote sustained a non-inflationary economic growth
2. To sustain a balance budget
3. To concentrate government spending and providing essential goods and services to public, e.g. infrastructure, healthcare, housing programs

Tax policy is a main part of fiscal policy, the main purpose of tax policy in Singapore are

1. Revenue Raising

This is the main aim of tax policy and is the main substantial revenue generated from tax is used to fund for government operations

1. Promotion of Economic and Social Goals

This is the main aim of tax policy, the main substantial revenue generated from tax is used to fund for government operations

Tax has been used to archive desirable social and economic goals as to encourage automation and mechanization. This will accelerate capital allowance for most used asset for purpose of business.

The adjective belief of Singapore's tax policy is to maintain tax rates beneficial for both corporations as well as individuals. Maintaining our corporate rate will help us to continue to attract foreign investment into country. Keeping our individual income tax rates low will help and assist our people to work even harder. It will encourage and making risk-taking worthwhile and encourage local entrepreneurship.

(IRAS 2015, 2015)

To maintain stable government source of revenue thru taxes, in April 1994, Goods & Services Tax (GST) was announce and implemented with single rate of 3% and at the same time, personal income tax was down by 3% to help people adjust to the new tax.