SINGAPORE: If Budget 2022 was memorable for rolling out the Goods and Services Tax (GST) hike, Budget 2023 should be noted for the Government’s spending and investment plans.
The projected budget deficit of 0.1 per cent this year on the back of a deficit in the last financial year suggests a generous Budget – one that recognised the stresses faced by citizens and businesses, notwithstanding the need to balance the Budget over this term of government.
In his first Budget speech as Prime Minister-in-waiting, Deputy Prime Minister and Finance Minister Lawrence Wong announced policy measures on Tuesday (Feb 14) that were intended to “move Singapore forward in a new era”.
As expected, this included providing Singaporeans more assurance on issues of the greatest concern at this time: Inflation and housing affordability.
Enhancements to the Assurance Package and permanent GST Voucher will provide greater support to households to cope with the rising cost of living. Meanwhile, first-timer families will welcome having up to S$30,000 in additional housing grants to ease worries they may be priced out of the red-hot HDB resale market.
There will always be a tension between providing assurance and avoiding a dependency mindset where citizens come to expect the Government to insulate them from economic shocks and uncertainties.
But those with such concerns should bear in mind that providing assurance is also an investment in people, giving them confidence to step into a new era of heightened challenges.
Part of this confidence comes from providing assurance across life stages, such as helping parents with the cost of raising kids and giving them a good start in life, supporting platform workers with the transition to employee Central Provident Fund (CPF) contributions for better retirement adequacy, and topping up the ElderCare Fund and MediFund for seniors’ long-term healthcare needs.