Interesting Highlights Of Singapore Budget 2021

With the theme of Emerging Stronger Together which is apt for the turbulent 2020 that Singaporeans had to go through due to the COVID 19 pandemic and the various restrictions that came with it, Singapore Budget 2020 was revealed by the Deputy Prime Minister, Coordinating Minister for Economic Policies and Minister for Finance, Mr Heng Swee Keat on the 16th of February 2021. 

Before getting on to the highlights of Budget 2021, let us have a look how Singapore fared financially in 2020 amidst an unprecedented threat. Is it as worse as we think it is? Unfortunately, yes. In 2020, the economy shrank by 5.4%. In comparison, the Singapore economy grew 1.3% in 2019. What’s worse, this is the nation’s first annual contraction since 2001. 

This grim situation has resulted in high hopes and expectations for Singapore Budget 2021 and here’s some interesting highlights of the budget that all Singaporeans should be aware of. 

Singapore Budget 2021 Interesting Highlights 

1. The Household Support Package of S$900 million is expected to help Singaporeans during the trying times. Around 1.3 million households will receive $100 Community Development Council (CDC) vouchers to be used when they spend at shops and hawker centres. 
2. Singaporen households which are eligible will receive rebates to offset between 1.5 and 3.5 months of S&CC over the year.
3. Around 1.4 million lower-income Singaporeans will be receiving additional GST Voucher- Cash Special Payment of $200 in June. They will continue to receive the regular GST Voucher Cash payout, as per usual. 
4. Apart from that, around 950,000 households will be receiving additional rebates for utilities ranging from $120 and $200 under the GST Voucher - U-Save Special Payment. This payout will be paid in April and July. 
5. Around 780,000 children below 21 years old will receive a $200 top-up to their Child Development Account, Edusave account, or Post-Secondary Education Account. 
6. The GST hike which was expected to happen in 2021 will be postponed to between 2022-2025, depending on the economic outlook. The increase in GST rate is by 2 percentage points from 7 percent to 9 percent and is expected to help the rising recurrent healthcare needs. 
7. Wage subsidies under the Jobs Support Scheme (JSS) will be extended by up to a further 6 months in order to help businesses sustain during the coming months. Worst hit by the crisis, aviation, aerospace and tourism industries will see an extension from April to September while other hard hit industries such as food services, retail, marine and offshore, arts and entertainment will see an extension from April to June. 
8. The Wage Credit Scheme will be extended for another year at a co-funding level of 15 percent and is expected to support wage increments so that companies can continue to retain and attract Singaporeans. 

For more detailed and comprehensive updates regarding the Singapore Budget 2021, visit https://www.mof.gov.sg/singaporebudget/budget-speech and keep youself up-to-date! 

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