THE PAP Government will keep creating more opportunities and better jobs for all Singaporeans. PM Wong made this assurance clear in Parliament this Friday (28 Feb)
He was responding to the questions which MPs filed during the Budget 2025 Debate.
How is the Government helping Singaporeans keep pace with the rising cost of living?
Source: Lawrence Wong / Facebook, Prime Minister’s Office, Singapore / Youtube
This is a particularly pertinent concern in 2025. Prices remain high even though inflation has eased.
About 5 per cent of Budget 2025 is dedicated to cost of living measures like the $800 CDC vouchers and $800 worth of SG60 vouchers.
“A much larger part of our spending is in structural programs, especially to equip and empower Singaporeans through education, skills training, skills upgrading, job training and the significant moves we are making on SkillsFuture,” said PM Wong.
“As we have repeatedly emphasised, the more durable – the more sustainable – way to tackle cost of living is to ensure that Singaporeans enjoy higher real incomes. And that must be supported by a strong economy and productivity gains. That remains the key thrust of our approach,” he continued.
Helping Singaporeans earn higher wages and incomes is a continuing commitment.
“I expect to put in additional resources in the coming years to further strengthen SkillsFuture,” said PM Wong. “We will support every worker in Singapore. We will create even more opportunities and better jobs for all Singaporeans.”
Are the Government’s HDB subsidies sustainable?
Source: Lawrence Wong / Facebook
The HDB sells generously-subsidised flats to Singaporeans so that everyone can own a home. And Budget 2025 introduces a $75,000 grant (up from $50,000) for eligible families to buy a new Standard 2-room Flexi or Standard 3-room flat.
To make sure the HDB flats remains sustainable in an era of rising global home prices, the Government has introduced multiple rounds of cooling measures such as Additional Buyer Stamp Duty increases.
“And we have significantly increased BTO supply, as well as government land sales to make up for the disruption that occurred during COVID. And these measures have helped and will eventually stabilise the market,” said PM Wong.
Why the GST increase was necessary
Source: Lawrence Wong / Facebook
PM Wong also pointed out the GST increase was a difficult choice, but helped prevent a deficit in Singapore’s financial position.
“That [deficit] would have meant less funding for essential services, less support for our seniors, and fewer resources to invest in our future,” he said. “Basically, Singapore and Singaporeans would have ended up in a much weaker position.”
He noted that the Government has unveiled multiple rounds of enhancements to the Assurance Package so that most households will not feel the impacts of the additional GST for at least five years; this package includes cash payments for all adult Singaporeans, additional cash for lower-income seniors and MediSave top-ups.
The Government is on target with its fiscal projections and plans
Source: Ministry of Finance / Facebook
PM Wong also gave a frank accounting for the Budget’s fiscal figures.
“Several Members, I know, criticised MOF’s [Ministry of Finance’s] fiscal marksmanship. Look, when I started work in MOS, decades ago, one of my main tasks was to provide fiscal projections,” he said.
“As an economist, that was what I did. I was one of those who would run the models and churn out the figures, so I know exactly what this work entails and how difficult it is,” he continued.
“I will not defend the figures if they are off the mark. But I will speak up for our MOF officers who do this work with dedication and professionalism against any unfair criticisms,” emphasised PM Wong.
He also stressed that spending forecasts for the Budget are based on the best information available at that point in time.
“Our operating revenue projections have generally not been far off the mark. The average deviation over the 10-year period from FY 2010 to FY 2019 was within a reasonable range of 5 per cent. In the last two financial years – 2023, 2024 – the deviation has been larger, but still around 7 per cent. Which is comparable still to other jurisdictions like the UK and the Netherlands,” he contextualised.
Source: Canva
What then, really, is poor budget marksmanship?
“Poor budget marksmanship is when a government severely overestimates the revenue it will collect and underestimates its expenditure. That’s what poor marksmanship is about,” said PM Wong.
“Then the government makes unfunded promises that it cannot see through because there’s no money, or it borrows funds from somewhere else and kicks the can down the road, leaves behind a growing burden for the next generation,” he added. “But this is not the case in Singapore, with a responsible and prudent Budget.”
“Singaporeans will decide: Will they prefer a government that underestimates our needs, spends more from our hard-earned reserves and leaves us weaker? Or will Singaporeans prefer a government that steadfastly upholds fiscal responsibility and discipline and ensures we have enough resources for current and future generations to handle unexpected challenges,” PM Wong concluded.
“The PAP‘s approach is clear. We take our duty as stewards of the country seriously. We remain true to our mission and manage our finances carefully for the benefit of all Singaporeans now and in the future.”
