Six things to look out for in Budget 2024
DEPUTY Prime Minister and Finance Minister Lawrence Wong will deliver the 2024 Budget Statement in Parliament on Friday (Feb 16) at 3.30 pm. Several potential moves have been foreshadowed by the government, not least at the release of the Forward Singapore report last year.
1. Managing costs of living
With still-high inflation and sluggish wage growth, Budget 2024 could bring more support for households – even after a S$1.1 billion support package last September. Wong said in January that the Ministry of Finance was studying ways to provide additional support.
2. Bolstering small businesses
Grants for small and medium-sized enterprises (SMEs) could be expanded or redesigned. These could include more measures to help them go abroad and transform for productivity.
3. Skills-led support for employees and employers
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There will be details on “re-employment support” for the involuntarily unemployed, which gives temporary financial aid to those who upskill and retrain. There will also be enhancements to the Workfare Income Supplement, which tops up pay of low-wage workers, and the Progressive Wage Credit Scheme, which co-funds pay rises for them.
4. Clarity on corporate taxes
As Singapore prepares to implement a global minimum tax in line with changing global rules, industry players expect more details of this – and what tax-related credits, grants or incentives may be introduced to keep the city-state competitive.
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5. Continuing the green transition
There might be moves to promote sustainability among SMEs, such as through simplifying standards and expanding relevant schemes. For larger firms, there could be tax deductions for green investments.
6. Enhanced social support
Prime Minister Lee Hsien Loong hinted during his Chinese New Year visit to workers that Budget 2024 will bring measures to encourage parenthood. For the elderly, there will be details of the previously announced Majulah Package and enhancements to retirement adequacy schemes. There may also be moves to benefit working caregivers and persons with disabilities.
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