| Fiscal policy in Singapore is directed primarily at promoting long-term economic growth, rather than cyclical adjustment or distributing income. To meet its objective, the Singapore Government is guided by the following principles in its conduct of fiscal policy in Singapore: | |
| |  | | | i. | the private sector is the engine of growth, and the government's role is to provide a stable and conducive environment for the private sector to thrive; | | ii. | tax and expenditure policies should be justified on microeconomic grounds and focus on supply-side issues, i.e. incentives for saving, investment and enterprise; | | iii. | the counter-cyclical role of fiscal policy is limited, due to high import leakages. |
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| | The success of Singapore's fiscal policy over the years lies in the government's prudent expenditure patterns and conducive taxation policies that have complemented monetary policy in promoting sustained and non-inflationary economic growth. |
