DBS expects Singapore to report a fiscal surplus of $6.4 billion, or 2.1% of GDP, on the back of record economic growth in 2010. The budget projected a $3 billion deficit.

Total tax collections may rise to $46.4 billion vs $40.7 projected, enabling the government put forth an expansionary budget next month, DBS says in a note. 

 

“The key theme of this budget will be to redistribute the wealth created by the economy to those who have thus far benefited the least,” DBS says.

 

Preliminary data show Singapore’s economy grew 14.7% in 2010, nearly three times faster than the 4.5%-6.5% expected by the government at the start of 2010.