What makes a good Budget? If we were to ask every Singaporean the question, one would likely get a million different answers. Perhaps that is an exaggeration, but it illustrates how difficult the task is – coming up with a fair and comprehensive Budget to meet the needs of an increasingly diverse population. As for delivering it, one wrong move is all it takes to turn the Finance Minister into the nation’s punching bag.
So it is that after months of preparation, Deputy Prime Minister (DPM) Lawrence Wong unveiled Budget 2024 last week. Speaking with sincerity and conviction, Mr Wong reassured Singaporeans that this is a government that “always has your backs”. And delivered, he did. Besides announcing immediate measures to help tackle the cost-of-living pressures, Mr Wong unveiled an umbrella of initiatives addressing the needs of families, seniors, workers and businesses.
Eligible couples waiting for their BTO can receive subsidies to rent an HDB flat in the open market for a year. Families will pay lower childcare costs. Seniors will enjoy more support for their retirement needs under the Majulah Package. Mid-career workers aged 40 and above will receive a $4,000 SkillsFuture Credit to retrain in selected industries. A 50% income tax rebate, capped at $40,000, will help businesses manage rising costs. In short, Budget 2024 is somewhat of a bonanza, a S$131.4 billion pie with something for everyone.
Tackling inequality and keeping the Singapore Dream
The next question is, can this be considered an election Budget? As much as critics harangue the government for handing out CDC vouchers and utility rebates as a cheap tactic to woo voters, they are missing the entire point behind these measures – which is to alleviate short-term pain before longer-term policies kick in to drive growth and uplift wages.
However, with the window for the next General Election narrowing, Budget 2024 will inevitably be seen as an election Budget. In that sense, the electorate might even be expecting a windfall. Now, if winning the next election is all the government cares about, taking the Opposition’s irresponsible advice to raid the reserves and dole out the cash might just be a great tactic.
Fortunately, partaking in the shortsightedness of winning the battle and losing the war is not the way PAP governs this nation. Instead, this year’s Budget shows how the government articulate its vision for Singapore. It also highlights how the PAP intends to turn the ideas of Forward SG into concrete actions and prepare Singaporeans for the future. And true to form, Budget 2024 epitomises the PAP’s track record of driving real and sustainable growth while extending a helping hand to those who are currently struggling.
As to what the future holds, DPM Wong was honest and open about the threats Singapore faces. While there are silver linings, we must brace ourselves for the dark clouds of rising geopolitical tensions and technological upheaval. Domestically, an ageing population, a falling birth rate and a widening chasm between the rich and poor looms large. All of which are part and parcel of being a developed country in a globalised world.
Therefore, it is no coincidence that nearly half of the Budget (S$56.1 billion) goes towards social spending. Or that Mr Wong spends over half his speech explaining the measures to tackle inequality and strengthen our social compact. “In many developed countries, rising inequality and slowing mobility have fractured cohesion, and deeply divided their peoples… we do not want to succumb to the kind of harsh inequality we see in so many parts of the world,” said Mr Wong.
For nearly 90 minutes, our Finance Minister dished out an assortment of support to help individuals, families, workers, seniors and businesses achieve their Singapore dream. As for the 15 minutes spent explaining how Singapore will generate revenue to fund that spending, no new headline taxes or fees were introduced. In short, we can do so because our fiscal position is healthy and sustainable, added Mr Wong.
Herein lies what makes Budget 2024 unique and progressive. It is the use of dollars and cents to nudge society towards a fairer and more inclusive direction. All without succumbing to the pitfalls of a welfare state. The ComLink+ Progress Packages, for instance, combines financial assistance and family coaches to help less well-off families improve their circumstances. It also addresses the hard truths hindering social mobility.
Similarly, providing ITE graduates with an added incentive to pursue a diploma education is a generous step towards narrowing the skill gap through the more productive route of reskilling. In addition, it comes with the added advantage of narrowing the wage gap and lifting another class of workers up the income ladder. Overall, there is something very Robin Hood about this Budget – for it is a classic case of fiscal transfer where those who have done well lend a hand and help lift those from below up.
This approach is in stark contrast to the easy way out that the Opposition is so fond of – imposing a minimum wage or handing out unemployment benefits without any caveats. Both of which do not address employment challenges. Instead, they reduce a country’s competitiveness in the long run.
“Simple handouts and blunt measures do not solve poverty. This is why Singapore has continually paved our own way…(and) keep the Singapore Dream alive and well for all our people,” said Mr Wong.
A Budget for all Singaporeans
All around the world, “the government does not listen” is a common refrain. However, Budget 2024 puts to rest that Forward SG is little more than a glorified PR exercise. For here is a Budget that incorporates many of the ideas Singaporeans have provided – that is, to live in a fairer, more inclusive and sustainable society. And in this case, the government is on the same page and ready to flex its fiscal prowess to make it a reality.
As the first of many instalments, Budget 2024 hold great promises to equip Singapore for a brave new world. Peppered with bold and innovative ideas, the Budget is a commitment of the PAP to bring the plans laid out in Forward SG to fruition. But more importantly, it is also a toolkit that empowers all Singaporeans to pursue their passions and seize new opportunities in a time of unprecedented change.
And while this may sound paradoxical, Budget 2024 is not just about fiscal spending. Through it, DPM Wong has provided Singaporeans with an excellent platform to come together, help one another and move the nation forward through shared values. And in the spirit of fairness, it is about building a society where the better-endowed step up to uplift those less fortunate. One where the better educated extend a hand to help the less skilled and for those who earn more to get less (and vice versa). All the while giving every Singaporean the opportunities to pull their own bootstraps through reskilling and upskilling efforts.
By focusing on inclusivity, social mobility and long-term growth in Budget 2024, DPM Wong has laid out his vision for the progressive and compassionate country he wants to build and one we hope to see. For now, the Government has done its part in setting aside the money and laying out programmes. But laying out a fiscal buffet is the easy part. To build the next chapter of the Singapore story, we must take advantage of what this Budget has to offer. And it is one that involve stepping up to help each other, innovating and building a more productive economy and lastly, cultivating a nation of givers and learners.
“We aim to give more assurance to help Singaporeans navigate the uncertainties in today’s world…Ours must always be an economy that provides opportunities for all. An economy that benefits the many rather than the few,” said Mr Wong.
And just like that, Budget 2024 has succeeded in bringing about a renewed sense of hope and confidence towards our shared future.
Photo Source: The Straits Times ©️ Singapore Press Holdings Limited. Reproduced with permission/ Lawrence Wong via Facebook
