Budget 2023: More support for low-income families and individuals

• S$500 million top-up to ElderCare Fund; S$1.5 billion top-up to MediFund

• S$300 million boost to ComCare Endowment Fund

• Extensions to schemes for charitable giving

THE government is rolling out a slew of measures to support the lower-income segment and encourage charitable giving.

It will make top-ups to its ElderCare Fund and MediFund, increasing resources dedicated to lower-income individuals and seniors.

The move comes as Singapore becomes one of the fastest-ageing nations in the world, with one in four Singaporeans aged 65 and above expected by 2030, compared with one in six today, Finance Minister Lawrence Wong said in his Budget speech in Parliament on Tuesday (Feb 14).

The Ministry of Finance (MOF) will top up the ElderCare Fund by S$500 million. This fund supports means-tested subsidies for seniors who need home-based, centre-based or institutional care.

The ministry will also top up the MediFund by S$1.5 billion, as it looks to strengthen the safety net for lower-income individuals and seniors facing financial difficulties with medical bills even after government subsidies, MediShield Life and MediSave.

The ComCare Endowment Fund, whose investment income helps fund social assistance scheme ComCare, will get a S$300 million boost.

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Singapore’s spending on the early childhood sector has grown from S$320 million in FY2013 to S$1.9 billion in FY2022, said Wong.

Yet, the preschool enrolment rate is 80 per cent among children aged three to four years old living in public rental flats – lower than the national average of about 88 per cent.

The government will therefore work with Anchor Operators – selected preschool operators with funding support – to create 22,000 more full-day childcare places and expand the number of Ministry of Education kindergartens.

To encourage charitable giving, the 250 per cent tax deduction for qualifying donations made to institutions of a public character (IPCs) will be extended for another three years until the end of 2026. This will apply to donations made from Jan 1, 2024 to Dec 31, 2026.

The existing Business and IPC Partnership Scheme, which is due to lapse on Dec 31, 2023, will be folded into a broader Corporate Volunteer Scheme and extended for three more years to Dec 31, 2026.

Under the new Corporate Volunteer Scheme, which comes into effect on Jan 1, 2024, the scope of volunteering activities will be extended to ones conducted virtually or outside the IPCs’ premises.

The cap on qualifying expenses for IPCs will also be doubled to S$100,000, from S$50,000 currently.

Separately, Wong also announced that the Community Silver Trust will get a S$1 billion top-up to support social service agencies that deliver community care services for seniors. Self-help groups will also get a S$10 million top-up over the next three years, he added.