You might have heard the word "budget" being bandied around the news! What's it all about, and how can it impact you? Here's all the buzz about the Singapore Budget 2024! We're giving you the lowdown on the changes designed to support Singaporean households and more.
Are you ready for Budget 2024? Finance Minister and Deputy Prime Minister Lawrence Wong is facing a massive wish list from all corners of society! Academics, economists, labour groups, and even regular citizens have poured in their ideas, covering everything from disruption in the age of AI to cushioning families and businesses from soaring costs. Experts expect Budget 2024 to cover critical concerns, namely support for lower-income workers, greening the economy, and even boosting parenthood to tackle Singapore’s demographic dip.
Family matters are close to our hearts, so we’re going through Singapore Budget 2024 to find out what’s in it for families.
What is Budget all about?
A government budget is like a financial roadmap for the year, detailing where the money comes from and where it goes (think healthcare, education, and even defence). It’s the government’s way of informing citizens, “Here’s where we’re splurging dollars this year, given our needs as a whole!” Simply put, it’s a huge receipt showing us where every dollar goes and who’s keeping an eye on it.
The Budget Cycle
The Budget cycle begins every year before the Financial Year in April. In the lead-up to the unveiling of the Budget, ministers may often hint at what to expect. For example, you might have caught a whiff of how Prime Minister Lee Hsien Loong encouraged Singaporeans to consider having a baby dragon this year, so we can anticipate that the Singapore Budget 2024 will unveil measures encouraging parenthood.
On Budget Day (16 February 2024 this year) the Finance Minister struts into Parliament. He shares the lowdown on what’s cooking. Then, it’s game time! MPs get to grill the Government on last year’s spending and this year’s wishlist in a lively debate. Even though the governing People’s Action Party holds sway in Parliament with its MPs voting along party lines, Budget Day is expected to be a crucial occasion. It’s when major policy shifts and programs are revealed and where debates can shape or refine proposed initiatives.
Once Parliament gives the nod of approval, it’s up to the President to seal the deal. His job? Making sure we don’t dip too deep into our rainy-day savings, aka reserves. If he’s cool with the plan, it’s game on — the Budget becomes law, telling everyone exactly where the money’s headed.
So, next time you hear about the Singapore Budget, remember that it’s not just numbers on paper — it’s the blueprint for turning policy dreams into reality.
Singapore Budget 2024
The Singapore Budget 2024 brings significant updates affecting everyone. Speculation is rife about whether it will be a “General Election Budget” — given that the next General Elections will take place next year, plus we know a leadership transition is afoot. Notably, the Goods and Services Tax (GST) has risen to 9% by January 2024, coupled with Singapore’s ranking as one of the most expensive cities. The rising cost of living weighs heavily on citizens from varying socioeconomic backgrounds.
We will be looking closely at measures to help reduce costs and significant payouts to help with costs for families in Singapore when Deputy Prime Minister and Finance Minister Lawrence Wong delivers the Budget statement — themed Building Our Shared Future Together.
Guide to Budget 2024 for families in Singapore
Additional $600 in CDC Vouchers
About 1.4 million Singaporean households will receive an additional $600 in CDC vouchers, half of which will be disbursed in end-June, and the other half in January 2025. The vouchers will be split equally for spending at participating merchants, hawkers and supermarkets.
Cost-of-Living payout of up to $400 for eligible Singaporean adults
Some 2.5 million Singaporeans age 21 and above will receive cash payouts of between $200 and $400 in September 2024. To qualify, you must have an assessable income of not more than $100,000, and not own more than one property. Those who earn less than $22,000 annually will receive $400, while those who earn between $22,000 and $34,000 annually will earn $300. Singaporeans who earn between $34,000 and $100,000 will receive $200.
One-off U-save rebates of up to $950 for eligible HDB households
The rebates will be given out in April, July and October this year, and in January 2025.
Up to 4 months worth of Service and Conservancy Rebates
Households living in one- and two-room HDB flats will receive four months of such rebates, while those living in three- and four-room flats will receive three months of the rebates. Those in larger flats will receive two to 2.5 months of S&CC rebates. Similar to the U-Save rebates, you can expect the S&CC rebate to be given out in April, July and October 2024, and in January 2025.
Lower preschool & childcare fees for government-supported preschools
Preschool fees will be capped at $650 for anchor operators and $680 for partner operators before childcare subsidies. Higher subsidies will be given to all children from lower-income families, including those with non-working
mothers.
Housing for young families: more BTO flats and more rental options for those waiting for their flat completion
Young couples can look forward to more affordable BTO flats from late-2024 for new BTO projects.
In addition to the existing Parenthood Provisional Housing Scheme (which gives couples the chance to rent temporary housing while waiting for the completion of their BTO flat) the government will now be offering an Open Market voucher to couples for one year, giving them the chance to rent from the open market.
More details on the voucher will be announced by the Ministry of National Development at a later date.
More support for children with special needs: Caps to SPED school fees
The government will reduce the maximum monthly fees at special education (SPED) schools to $90 (previously $150). Fee caps at all special student care centres will also be lowered to reduce families’ out-of-pocket expenses.
Watch this space for more details on the policies for families!
References:
The Straits Times
The Business Times
Ministry of Finance, Singapore