Prime Minister Lawrence Wong will deliver the Budget this week (Feb 12). Aside from being one of the most anticipated speeches in the parliamentary calendar, the Budget is the government’s annual financial plan.
It sets out how our government will raise and spend money to support our well-being and the country’s long-term development.
Unlike many other countries, the fiscal prudence practiced by successive PAP governments has enabled Singapore to maintain a healthy surplus. In doing so, Singapore has been able to move forward with plans without relying on massive external borrowing, deep cuts to spending or onerous taxation.
Here’s a throwback to 5 policies announced in previous Budgets that have improved the lives of Singaporeans.
2007: Workfare Supplement to uplift lower-wage workers
Keeping the promise to build a more inclusive society, the Workfare Income Supplement (WIS) was introduced during Budget 2007.
The scheme, which sees the government step in to supplement the incomes of low-wage workers and help them build up their savings, was a major policy change. As of 2025, workers whose earnings are in the bottom 20% receive up to $4,900 in cash and CPF top-ups.
Since its inception, the government have broadened the WIS to benefit more Singaporeans. Besides including persons with disabilities (PWDs) in the scheme (2012), the eligible age for WIS was lowered from 35 to 30 in 2023 to include younger workers earning up to $3,000 a month.
Having disbursed over S$12.7bn to uplift more than 1 million lower-income workers, the WIS is now a key pillar of Singapore’s social security landscape.
2014: Caring for our seniors with the Pioneer Generation Package
What makes the Budget all the more important is how money is spent with the future in mind. In preparation for a super-aged society (where over 20% of the population is aged 65 or older), the Pioneer Generation Package was introduced in Budget 2014.
The scheme provided annual Medisave top-ups, as well as outpatient and MediShield Life subsidies for life, made healthcare affordable for our “Pioneers”, defined as those born on or before 31 Dec 1949.
Since then, the government has introduced similar schemes to support more Singaporeans as they age.
In Budget 2019, a Merdeka Generation Package was rolled out to deliver healthcare subsidies for Singaporeans born between 1950 and 1959. In 2023, the Majulah Package was announced that helped boost retirement funds for “young seniors” (i.e., born on or before 1973).
By providing assurances to our seniors that they will be cared for, we are building a society where every Singaporean can live long and prosper.
2015: SkillsFuture Credit to cultivate life-long learning
Investing heavily in education and its people has long been the PAP way.
To promote lifelong learning, Budget 2015 introduced a SkillsFuture Credit of $500 for all Singaporeans aged 25 and above. The credit, which can be used for a broad range of courses, gave Singaporeans the opportunity to pick up new skills and hobbies at no cost.
Since then, the government have expanded the SkillsFuture Credit scheme to help workers stay competitive in a changing world.
To help keep Singaporeans aged 40 and above employable, Budget 2024 provided a $4,000 top-up to their SkillsFuture Credit to pursue longer courses and to reboot their skills.
Our investment in Singaporeans has paid off. With a highly skilled labour force and a robust economy, Singapore’s unemployment rate has remained low (2.0%) compared to other OECD countries.
2021: A more equitable society, CDC Vouchers to help with the Cost of Living
First introduced in 2020, CDC vouchers were originally a targeted measure to help lower-income families affected by the COVID-19 pandemic. The success of the scheme meant that it provided immediate relief to low-income households, while also directed spending to small, heartland businesses that were struggling to stay afloat during the pandemic.
In Budget 2021, the CDC voucher program was scaled up to include every household. The result? Nearly $4 billion in CDC and SG60 vouchers been spent at heartland merchants, hawkers, and supermarkets, creating a multiplier effect.
More importantly, this fiscal transfer, along with other policies such as the Progressive Wage Model and WIS, is instrumental in reducing inequality. As of 2025, Singapore’s Gini coefficient fell from 0.426 to 0.359 in 2025 after government transfers, the lowest in nearly a decade.
2025: Financial support for large families
During Budget 2025, our government showed its support for bigger families with the new Large Families scheme. This helped support parents with three or more children.
Under the scheme, married couples will receive up to $48,000 of support for their third and subsequent child.
The Large Families Scheme follows a long tradition of policies that support Singaporeans in starting and raising families. Besides the Baby Bonus Scheme (which began in 2001), the government has also introduced fee caps at preschools and increased the number of paid parental and paternity leave.
For Singaporeans who aspire to start a family, the message is clear.
It takes a village to raise a child, and the PAP government, through its financial prudence, will make sure that the proverbial village has everything it needs to raise healthy, well-adjusted kids.
As we count down to Budget 2026, Singaporeans can rest assured that public money will be used responsibly to address social issues, drive growth, create better job opportunities and build a brighter future for us all.
