The Singapore Government manages the country’s Budget, which is prepared annually. When making the Singapore Budget 2020, many factors are taken into consideration, especially economic changes. It includes the revised revenue and projections for expenditures expected in the following financial year. The Government makes sure to take into account the current and future needs of Singapore and help the country remain fiscally sustainable.
Singapore Budget Feedback Process
Many discussions occur between the Ministry of Finance or MOF and other agencies and ministries. Each of them presents their current situations, their concerns, and their needs in the future. All of these discussions are open for public debate. The MOF requests general feedback from businesses, unions, and individual households. The feedback is submitted in various ways, such as dialogue sessions, listening points all across the island, and multiple online channels. Afterward, the feedback gets reviewed, and the Government can begin shaping the Singapore Budget 2020.
Once the Government approves the Budget Statement, the MOF delivers it to the Parliament. This happens every year in February. The Budget then is taken under consideration, and many facts are focused on like businesses that require programs for promoting economic activity. Also, the needs and requirements of individual households are taken into account since they are the backbone of the community. After receiving the Budget Statement the following week, the Parliament reconvenes for the Budget Debate, where the members address different kinds of aspects focusing on the latest Budget. Then the Finance Minister gives a Round-Up Speech responding to the queries of the members and finally summing up the main points of the new Budget.
Parliament then sits on the Committee of Supply, carefully looking over the plans of each Singapore ministry. Individual MPs might ask for a symbolic “cut” to a specific Budget proposal by the department. Then the MP will speak on the issues important to that ministry. Once the Committee of Supply has cast their votes on all the estimates received from ministries, they report their decision to the Parliament, who then debates and votes on the Supply Bill.
Afterward, the President must give consent to the Supply Bill. The President will take into consideration all of Singapore’s past reserves. Her approval on the Supply Bill might be withheld if she believes that the estimated expenditures might draw on past reserves. Once consent is given to the bill, it then gets enacted and becomes a law known as the Supply Act. This act then controls government spending in the coming financial year.
Need for a Balanced Budget
A balanced budget is required to manage Singapore’s finances properly. Without the consent of the President, the Government could not borrow to fund spending needs. Maintaining a balanced budget, each term ensures that public funds are well allocated. To account for public money, the Government prepares audited accounts and statements. These are presented to the President. In this way, she can see if reserves not accumulated during the current government term were drawn on or might be drawn on later. The Singapore Budget 2020 includes support for COVID-2019.
Support for Families
The Singapore budget provides for families and especially for new parents, With the Baby Bonus Scheme expecting parents to receive a gift of cash. Other ways families are supported is by the Child Development Account, and first-time homebuyers can enjoy a higher CPF Housing Grant.
Support at Work
A permanent scheme on the Budget is the Workfare Income Supplement that supplements the wages and retirement savings of low-income workers providing them with financial security.
Honoring the Elderly
Singapore senior citizens receive generous health subsidies, and the Silver Support Scheme supports low-income seniors.
Deputy Prime Minister and the Finance Minister delivered the Government’s Resilient Budget in response to the COVID-19 pandemic and revealed that money has been set aside to help businesses, workers, and households in Singapore.
Summary on Singapore Budget 2020
- Millions set aside to support efforts containing COVID-2019
- GST won’t be increased in 2021
- SkillsFuture top-Up
- Enhanced MOE Financial Assistance Scheme
- Cash Payouts for Singaporeans aged 21 and over
- Cash Payout for adults with at least one child aged 20 and below
- Grocery Vouchers for the needy
- Additional GST Voucher for households with five or more members
- Top-up Passion Card for Singaporeans above 50
- Matched Retirement Scheme for quarterly payouts
- Silver Support Scheme