Budget 2026, largest to date, passed against backdrop of global uncertainty: Indranee Rajah

Budget 2026's Committee of Supply debates have ended with the passing of the largest annual budget in Singapore to date of $154.7 billion.

This is amid the backdrop of a changed world global uncertainty, Leader of the House Indranee Rajah said in Parliament on Friday (March 6).

"The international order that underpinned stability and prosperity for over nearly eight decades is breaking down," she said.

"Geopolitical tensions have increased, the multilateral system that had served us well has weakened. More countries are resorting to unilateral action. The rule of law is under strain with the resurgence of a might is right approach."

Budget 2026 is therefore presented as an action plan for Singaporeans to navigate this changed world and secure their future, she added.

In order to do so, Singaporeans must make use of the resources available.

One key aspect discussed in Budget 2026 was artificial intelligence (AI).

The Budget aims to utilise it as a "strategic advantage", driving national adoption of AI so that Singaporeans can make use of the opportunities provided by technology, Indranee said.

Another key discussion was the dip in Singapore's total fertility rate, down to 0.87 from 0.97 in 2024.

This signals the start of the marriage and parenthood reset as a whole of nation effort, she said.

"As we begin this important work, we will take into account the many helpful ideas and suggestions from members on both sides of the House on what we can do to provide more support for families and couples who aspire to become parents."

Quiet confidence

Indranee also stressed that Singapore's identity as a beacon of safety, security and stability is the result of successive budgets that have been prudent.

The Government has projected a surplus of $15.1 billion for the financial year of 2025, while many major economies in the world are experiencing a rise in public debt that puts pressure on their growth.

Recent developments with US President Donald Trump's Liberation Day tariffs and war in the Middle East have added to the global uncertainty, impacting trade and investment, as well as energy prices worldwide.

"Viewed in light of these changed circumstances, our surplus is less about marksmanship and a whole lot more about assurance and quiet confidence," she said.

"We have the ability to do more for Singaporeans with ballast and buffer against potential turbulence."

She also spoke of Singapore's system of democracy, which she termed as the country's "anchor".

Admitting that the system isn't perfect, Indranee promised that the Government will continue to find ways to improve it.

"But we have something rare and precious," she added, referring to Singapore's model of democracy. "To safeguard it we must have the right laws, the right principles, and most importantly, the right people."

@asiaone Speaking in Parliament on Friday (March 6), Leader of the House Indranee Rajah set out why "ballast and buffer" against potential turbulence - in a world of uncertainty - matters. #sgnews #Singapore #Parliament #Budget #SGBudget2026 #OurBudget2026 #Uncertainty ♬ original sound - AsiaOne

Over nine working days of debates, 68 members spoke on the Budget Statement, the highest number in recent Budgets, with about 21 hours of debate.

The six days of Committee of Supply saw 425 cuts covered with almost 55 hours of debate.

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khooyihang@asiaone.com