Budget 2015: A huge rise in expenditure
Total expected expenditure will go up quite sharply in 2015 (68,222 million) compared to 2014 (57,197 million), about a 19.2% increase.
Deficit instead of surplus
Since 2010 the government has run a surplus or kept close to a balanced budget, but 2015 will see a deficit of 6,672 million. The last big deficit was in 2009, with a deficit of 819 million.
Transport and health sees big increases
Although every sector sees an across the board increase in spending, two sectors stand out: transport and health.
- Transport: Year-on-year, transport spending will go up from 6,007 million in 2014 to 10,850 million in 2015, almost a 80% increase. Spending as a percentage of total government spend will increase significantly from 2014 (10.5%) to 2015(15.9%).
- Health: Year-on-year, transport spending will go up from 7,183 million in 2014 to 9,291 million in 2015, almost a 29.3% increase. Spending as a percentage of total government spend will also increase from 2014 (12.6%) to 2015(13.6%).
- As a result of boosted spending in these two sectors, all other sectors, as percentage of total spending, fell, or stayed close to where they were.
Revenue less from housing and more from cars
On the revenue end of things, the government will make more money from COEs and less from stamp duty.
Which makes sense as the housing sector is cooling and the government is releasing more COEs.
- Vehicle Quote Premium: Year-on-year, COE revenue will go up from 3,665 million in 2014 to 5,082 million in 2015, about a 38.7% increase. Revenue as a percentage of total government revenue will increase from 2014 (6%) to 2015(7.9%).
- Stamp duties: Year-on-year, stamp duty revenue will fall from 2,790 million in 2014 to 2,595 million in 2015, about a 7% decrease. Revenue as a percentage of total government revenue will also fall from 2014 (4.5%) to 2015(4%).