Singapore Budget 2014

Deputy Prime Minister and Finance Minister,Tharman gave his annual Singapore Budget speech in Parliament yesterday afternoon, highlighting to achieve a fair and equitable society in the upcoming year.

After the announcement of the Pioneer Package made by Prime Minister, Lee Hsien Loong earlier this month, Tharman elaborated on the details of the package. The package is launched to recognise the contributions pioneers have made, will apply to all Singaporeans who were at least 16 years old in 1965, and citizens by 1987.

In summary, there will be a further 50% discount off subsidised bills in SOCs and Polyclinics along with enhanced benefits under CHAS. There will also be disability assistance of $1.2k per year.

Medisave can also be used more flexibly along with $200-$800 top up per year. There will also be premiums through MediShield Life subsidies and Medisave Top-ups.

Meanwhile, with effect from Jan 2015, the CPF employer contribution rate will be raised by 1 percentage point for all workers. This increase will be channelled to the Medisave Account. The government will also raise the employer contribution rate by 0.5 % for those aged 55-65.

On the other hand, with immediate effect, there will be a higher tax rate implemented on tobacco, liquor and lottery betting. This is to discourage society from smoking while keeping the price of such goods balanced with the inflation rate.

In summary, Tharman unveiled the overall budget balance as a deficit of S$1.2 billion, which is about 0.3 per cent of Singapore’s GDP.

Generally, Singapore Budget 2014 has brought some smiles especially to the pioneer generation. However, a large group of people are unhappy with the further price hike in tobacco and alcohol since the initial prices of both goods were already much higher relative to other countries.

Well, only time can allow everyone to either accommodate or make the necessary adjustments.