CDC vouchers no more? Economists see smaller, targeted relief for Budget 2026

[SINGAPORE] The generous Community Development Council (CDC) voucher scheme that has become a household fixture since the days of the Covid-19 pandemic could be scaled back in Budget 2026, with economists expecting smaller payouts and tighter income criteria.

With core inflation cooling to 0.7 per cent in 2025, from its peak of 6.1 per cent in 2022, economists said the conditions that justified broad-based handouts have largely passed, even as cost-of-living concerns remain an issue for many.

Said OCBC chief economist Selena Ling: “With inflation abating, maybe it’s time to tweak the formula so that they are not taken for granted. So either scaling back or targeting more specifically where best needed.”