The government expects growth of 1.0 to 3.0 percent this year after it slowed to 2.0 percent last year, the weakest since 2009.
Total spending in fiscal 2016/17 is expected to rise by S$5.0 billion from the previous year, Heng said.
The government is likely to record an overall budget surplus of S$3.4 billion ($2.48 billion) or 0.8 percent of gross domestic product in fiscal 2016/17, he added.
To help the marine and process industry, Singapore will defer levy increases for work permit holders in the sectors for one year.
"The extended downturn in oil and other commodity prices is affecting commodity-related activities, particularly the marine and offshore sector," Heng said.
Singapore's $10 billion rig industry, dominated by Keppel Corp and Sembcorp Marine is facing cancellations and a dearth of new orders.
To help companies, especially small and medium enterprises, the budget proposed to raise rebates for two years on corporate income tax to 50 percent of tax payable from 30 percent, with a cap of S$20,000 for each year.
Follow CNBC International on Twitter and Facebook.