Singapore’s lawmakers have launched the three-day Budget debate, focusing on tackling inequality, enhancing transparency in public spending, and addressing the rising cost of living. The debate comes after Prime Minister and Finance Minister Lawrence Wong delivered the Budget statement on February 12, with the House reconvening on February 25 for the second day of discussions.

Transparency in Public Spending and Economic Strategy

Workers’ Party chief Pritam Singh highlighted the need for greater transparency in public expenditure, particularly regarding the Forward Singapore initiative, which involves a $40 billion investment through 2030. He noted that there has been no thorough tracking of how the $25 billion allocated for the Research, Innovation and Enterprise plan has been spent.

Mr. Singh questioned the continued use of GDP growth as a metric for determining the national bonus for political office-holders, pointing out that Deputy Prime Minister Gan Kim Yong had noted GDP growth may no longer reliably create jobs for Singaporeans. He suggested that the bonus should be tied more directly to job creation in the AI era.

Mr. Singh also raised concerns about the relevance of other metrics, such as unemployment rates and real income growth for the bottom 20th percentile of the population. He called for a more practical approach to measuring economic success that aligns with the needs of the current labor market.

Cost of Living and Social Support

The rising cost of living remains a top concern for Singapore households, prompting discussions on how to refine existing support mechanisms. Mr. Singh proposed adjusting the CDC voucher scheme to better assist larger families, suggesting a $500 base voucher for households with three or fewer members and an additional $150 per person for households with more than three members.

Nominated MP Terence Ho suggested redefining vouchers and credits as a “social dividend,” an annual sum given to citizens to reflect their stake in the country. He emphasized the importance of ensuring that all Singaporeans, especially the youth, have a clear understanding of the opportunities available to them.

MPs also discussed the need for tax reforms that balance cost-of-living concerns with the government’s revenue needs. Mr. Saktiandi Supaat called for raising the personal income tax exemption threshold from $20,000 to $25,000 or $30,000 to keep pace with rising median incomes. Meanwhile, Mr. Shawn Loh proposed that the government commit to not increasing GST beyond 2035, unless there are adverse economic conditions.

Mr. Loh also suggested that unexpected fiscal surpluses should be used to uplift Singaporeans, particularly the elderly. He proposed increasing Silver Support payouts for seniors above the age of 80 or 85 who live in HDB flats.

Education and Family Support

MPs also addressed issues in the education system, with Ms. Gho Sze Kee criticizing the Direct School Admission (DSA) scheme for creating an uneven playing field for students. She proposed setting aside a quota for non-DSA students to ensure fair access to popular schools.

Mr. David Hoe suggested providing families with “jumbo Build-To-Order flats” with extra bedroom space to accommodate growing families, with additional subsidies to keep the cost comparable to smaller units. He also called for more flexibility in upgrading flats when a new child is born.

Ms. Valerie Lee highlighted the need for more support for the “sandwiched generation”—families caring for both children and elderly relatives. She argued that current family support schemes only begin offering significant benefits from the third child onwards, even though the first two children can already strain household resources.

Ms. Jessica Tan proposed the creation of integrated family support hubs that would provide one-stop services for childcare, eldercare, and employment assistance. She also recommended incentivizing caregiving-friendly workplace policies to encourage employers to retain caregivers in the workforce.

The debate continues as MPs seek to balance economic growth with social equity, ensuring that the benefits of technological advancement and economic expansion are shared across all segments of society.