Despite these efforts, the middle-income bracket may continue to experience cost-of-living concerns, especially if they are squeezed by financial obligations such as caregiving and loan repayments.
Though significant in providing much-needed relief, the S$1.9 billion enhancement to the Assurance Package, even when considering additional measures like the Personal Income Tax rebate and the LifeSG credits, appears relatively modest compared to the S$3 billion boost in Budget 2023.
Following the sizeable financial assistance offered in recent Budgets to cushion the economic impact of the global pandemic, policymakers are likely eager to strike a balance between supporting citizens in view of persistently high inflation rates alongside sluggish growth, and avoiding entrenching expectations for perpetual government intervention.
In his Budget speech, Deputy Prime Minister and Finance Minister Lawrence Wong also expressed cautious optimism about the anticipated improvements in economic outlook this year. Barring another major crisis, this may signal a potential shift from the extensive financial assistance that peaked during the pandemic years.
Fiscal prudence has always been the priority of policymakers when it comes to managing the nation’s finances, aiming to steward the finite resources responsibly and sustainably without shortchanging future generations.
While the government is expected to remain firmly supportive of the least fortunate, the middle class will have to moderate their expectations and reliance on the government for financial assistance moving forward.
It is not going to be easy, but the social compact that undergirds a more inclusive and equitable society involves embracing our individual responsibilities while actively supporting those in greater need.