Expecting Surplus Budget, Singapore To Give Income-Based Bonus To Citizens
February 21st, 2018
The Singaporean government has announced to pay a one-off bonus to all its citizens, expecting a surplus budget this fiscal year. All the adult citizens in the country will get a one-off bonus of up to 300 Singapore dollars (about Rs 14,700) based on their income.
Adult citizens with an income of S$ 28,000 or below will be eligible to receive S$ 300; those whose incomes ranging from S$ 28,001 to S$ 100,000 will receive S$ 200; and citizens with incomes in excess of S$ 100,000 will receive S$ 100, according to a report by Straight Times.
The highest surplus occurred because of exceptional revenue from statutory board contributions and stamp duty collections. Earlier in 2011, the country had given growth dividends of between S$ 100 to S$ 800 to 2.5 million citizens.
The announcement was made by finance minister Heng Swee Keat during the budget speech in Singaporean parliament. He described the bonus as a monetary gift given on special occasions. He also added that it reflected government’s commitment to sharing the results of the nation’s development with the citizens. As per the report, about 2.7 million people will get benefited from the bonus.
The country expects a record surplus for the current financial year. The bonus will be distributed at the end of this year and will cost the government S$700 million. “For the financial year 2017, the Republic expects its biggest overall budget surplus at S$9.61 billion, owing mainly to “exceptional statutory board contributions” and “higher-than-expected” collections from stamp duties due to a recent pick-up in the property market,” Heng Swee said.
“We do not expect either to occur every year. It is not a structural surplus. We cannot base our long-term fiscal planning on the basis of exceptional factors being positive, year after year,” he added. He also said that the government would spend S$ 5 million for railway infrastructure development.