Budget 2026 debate: MPs call for SkillsFuture to be more targeted, personalised for workers

But MP Xie Yao Quan (PAP-Jurong Central) flagged growing pressure on Singapore’s finances, citing a Ministry of Finance projection that government spending will increase to around 19.5 per cent of gross domestic product by 2030.

While total revenue is estimated at 19.4 per cent of GDP in 2026, Mr Xie said it was unclear whether that figure could serve as a reliable guide for future years.

To meet long-term spending needs, he argued that Singapore should tax assets more significantly. Asset-related taxes – comprising property tax and estate duty – currently stand at an estimated 0.9 per cent of GDP for the 2026 financial year.

“We should aim to raise property tax collections to 1.2 per cent of GDP in the long term, and focus on the top tier of residential properties,” he said.