In 2018, the Singapore economy grew by 3.2%, with the overall budget at a surplus of S$2.1 billion or 0.4% of GDP.
For 2019, the government has projected an overall budget deficit of S$3.5 billion. Heng stated that apart from an increase in the total expenditure of government ministries, part of the deficit would also be a result of S$6.1 billion being set aside for the “Merdeka Generation” Package (support for the citizens born between 1950 and 1959) and S$5.1 billion being set aside for long-term care support. Eligible Singaporeans will also get up to S$300 as part of a “Bicentennial Bonus”, as well as a personal income tax rebate. The tax system will be made more progressive and resilient, he said.
The Finance Minister also announced a tightening of the foreign worker quota for the services sector among other initiatives for businesses and workers.
Here’s what you need to know about the Singapore 2019 Budget.
