Singaporean to benefit from 1.8 billion surplus-sharing package

No where near the USD146 billion stimulus approved in the U.S. recently, the Singapore government is not to be outdone. If you where watching Channel News Asia (CNA) last evening, you would have notice the ‘Special Budget Report”.

Broadly, depending on their income scale and type of housing, Singaporeans will get between SGD100 to SGD600 from the package. Unfortunately, for me, there where some gray areas. It’s either I didn’t fit into a particular income bracket or housing type. Only thing I know that’s in the bag for me is the NSMen status.

This is most likely a bid to boost consumer confidence in the economy amid fears of the U.S. recession.

Feb 15, 2008

$1.8b hongbao package for all S’poreans

By Lydia Lim, Senior Political Correspondent

ALL Singaporeans will benefit from a $1.8 billion surplus-sharing package that Finance Minister Tharman Shanmugaratnam unveiled in Parliament on Friday.

Everyone will gain from the $865-million Growth Dividend scheme, with the largest cash gifts going to lower and middle-incomers.

Tax payers will get a personal income tax rebate of up to $2,000.

Older Singaporeans aged 51 and above will receive top-ups of between $150 to $450 to their CPF Medisave accounts this year, to help them pay for medical bills and higher Medishield insurance premiums.

All these are possible because of last year’s bumper overall budget surplus of $6.4 billion, the result of excellent economic growth and a buoyant property.

To help Singaporeans save more for old age, Mr Tharman also announced a special sign-on bonus of up to $4,000 for lower and middle-incomers who join the new CPF Life annuity scheme.

VIDEO

Budget 2008 gives $1.8b hongbao to S’poreans
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Highlights of S’pore’s 2008/09 budget

FOLLOWING are the highlights of Singapore’s 2008/09 budget delivered by Finance Minister Tharman Shanmugaratnam in Parliament on Friday.
KEY POINTS:
- Singapore 2007/08 budget surplus at S$6.4 billion.
- Manufacturing investment likely S$16 billion in 2008.
- Rising cost of living a major concern.
- There is limit on Singapore dollar appreciation.
- To adjust tax policies to stay competitive.
- Research spending to be increased to S$7.5 billion by 2010.
- Tax deductions for R&D to rise to 150 percent from 100 percent.
- To keep business cost competitive against other cities.
- To defer another S$1 billion of public construction projects.
- Corporate tax rate of 18 per cent is competitive.
- To introduce tax incentives for family-owned holdings and insurance brokers - To drop estate duty immediately.
- No cut in personal income tax this year. Grants 20 percent income tax rebate capped at S$2,000.
- To tax all alcoholic beverages based on alcohol content.
- Expects 2008/09 budget deficit of S$0.8 billion.

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2008 Budget to build top quality, resilient economy

THE 2008 budget is about creating new advantages and fresh opportunities for Singapore to build it into a top quality economy, and developing the capabilities of its people and enterprises, said Finance Minister Tharman Shanmugaratnam on Friday.
It is about social resilience - keeping the people together as Singapore grows and ensuring that no one is left behind.

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