Budget FY2006

Election Budget 2006 is out!

*ahem*
hmm, this year's Budget is full of goodies, and from what I understand so far, nothing bad is coming.
*ahem-2006-is-election-year-ahem*

Well well, let's see.

1) Progress Package.

This is by far, the most obvious feature of the Budget that screams "ELECTION".
Hey, they are not even coy about giving money.

Growth Dividends

It used to be "Shares" (New Singapore Shares, Economics Restructuring Shares), to give citizens a sense of belonging in Singapore (Inc.). Now, as part of the Progress Package, they are giving CASH.

Growth Dividends - You don't even need to go to the local bank or ATM to indicate that you want to cash out your shares. It is given to you as CASH.

$800 for most people (45% of citizens), $600, $400 or $200 for the rest, depending on income and wealth.
$800 COLD HARD CASH leh..... Suddenly, I love the PAP already....

Wow. what is this ringing sound in my head....."election, election, election....."

[Note: this Growth Dividend is given to all Adult Singaporeans. You don't have to do anything, just wait for a letter from CPF in March for instructions on how to sign up for the Progress Package]

Oh btw, New Singapore Share was pioneered in 2001.....wait, i am sure its a coincidence that 2001 was an election year as well.....

• Workfare Bonus
• Rebates for Lower income
• CPF Top-up for Elderlys
• Opportunity Funds for Students.
• NS Bonus (CASH for us! this time the amount is much bigger. $400 for people who have completed their NS cycle. i hear M16 gunshots amidst the yells of "election")

Wow. Incentives for EVERY SINGAPOREAN!!
3 Cheers for the Election, sorry, Progress Package!

2) Additional CPF Housing Grants

hey if all the Upgrading Projects is not enough for you guys to vote us back in power, maybe I'll make HDB flats cheaper than you!

"cheaper than market price", that is. I am sure many are not aware that "subsidised" HDB flats are not necessarily more expensive than construction costs.
"subsidised" means its cheaper than market prices.....

Oh well, no complain about this, since its abt helping the poor to get a roof.

3) No increase in Tobacco and Liquor Tax

This is such a gem, I have to admire the government this time. Tobacco tax has been increasing steadily 20% almost every year, and most of us have come to accept this as part and parcel of life. Smokers always get a bad deal out of the budget.

but guess what, so many uncles and aunties smoke...and smokers are voters too!!
very discreet.

4) Budget Deficit

By now, most Singaporeans would have accustomed to the PAP's reputed distaste for budget deficit. Every now and then, an opposition politician would call out to give out more, help poorer singaporeans more. But the government would point to the Budget and claimed that their hands are tied. This is a government that strives very hard to maintain a positive Budget.

In fact, when many governments all over the world adopted a budget that includes proceeds from land sales (an accountancy practice which UN endorses, if I'm not wrong), our Singapore government refuses this practice, transferring land sales revenue to other part of the government (reserve?). Even with this, the government does its very best to maintain a positive Budget, so that the reserves would continue to grow and serve as an alternative to natural resources that we are so lacking.

This is what make this year's Budget so interesting.
There is a $0.4 billion overall budget surplus for FY2005, and a projected surplus of $0.7billion before Special Transfers for FY2006.

HOWEVER, this surplus would turn into a deficit to the tune of $2.9billion after taking into account Special Transfers, which include the Progress Package, top-ups to the endowment funds, and investment in R&D.

A deficit-abhorring government endorsing this budget?

PM Lee assured the House that the Government will be able to finance this deficit from funds accumulated in its current term and will not need to draw on past reserves.

Well...at least they are sticking to their guns on not touching the reserves.



I love Election Budgets. now now, if only democracy works every year instead of 4...