SINGAPORE: Budget 2025 has been described as a “feel-good” Budget designed to set the stage for the upcoming General Election, political observers said on Tuesday (18 Feb).
Compared to previous election-year Budgets in 2020 and 2015, this year’s financial plan is seen as notably more generous.
Delivering the Budget speech, Prime Minister and Finance Minister Lawrence Wong called it “a Budget for all Singaporeans.”
The package includes increased Community Development Council (CDC) vouchers and utility rebates, along with SG60 credits to mark Singapore’s 60th year of independence.
Families with three or more children will receive additional support to manage rising costs, while businesses, hawkers, and workers are also included in the assistance measures.
Some analysts described the S$800 CDC vouchers as an unexpected “surprise.”
A More Inclusive Approach
Dr Teo Kay Key, a research fellow at the National University of Singapore’s Institute of Policy Studies (IPS), noted that the Budget is “more generous and more inclusive, especially in the quantum of top-ups, vouchers, and rebates.”
She highlighted that the SG60 package is even larger than SG50, which coincided with the 2015 General Election.
However, analysts also stressed that the Budget is not solely driven by the upcoming election. Rising costs of living remain a major concern, and the government is addressing these issues while preparing for the polls.
Dr Mustafa Izzuddin, a senior international affairs analyst at Solaris Strategies Singapore, described the Budget as “incredibly generous” due to three key factors: inflation concerns, the SG60 anniversary, and the upcoming election.
Singapore Management University law professor Eugene Tan noted that Budget 2025 balances both social and economic dimensions, tackling immediate concerns while laying the groundwork for future challenges.
“In one word, ‘bifocal’ is how I would describe the Budget,” he said.
Election Timing: A Strategic Move?
With the next General Election required to be held by November 23, analysts believe the Budget’s “feel-good” factor could influence the timing of the polls.
Dr Mustafa suggested that the government may call the election between May and July, as the impact of the Budget’s measures takes time to be felt but also has a limited “shelf life.”
Associate Professor Tan agreed, saying May is a likely window due to the disbursement of S$500 CDC vouchers that month, though July remains an option.
Meanwhile, political scientist Dr Chong Ja Ian noted that with key benefits rolling out in July, the government could consider a later election in September.
“Perhaps the current administration is hedging its bets,” he said.
Independent political observer Dr Felix Tan pointed out that handouts were “well spaced out” throughout the year, making it difficult to pinpoint an exact election date.
He cautioned against speculation, stating, “It could be in May, it also could be after July … or shortly after National Day.”
Despite its generosity, some analysts doubt whether the Budget will significantly sway voter sentiment.
Associate Professor Tan argued that while grants and subsidies provide relief, they do not resolve the broader perception that “Singapore has become too expensive.”
“The irony of the handouts is that the Budget statement seems to confirm this perception,” he added, suggesting that such measures act more as a “band-aid” rather than a long-term solution.
Dr Felix Tan echoed this view, stating that voters who have already made up their minds are unlikely to change, while those undecided may welcome the measures but not necessarily alter their voting choices.
Public Scepticism: Are Handouts Truly Helpful?
Following the announcement of Budget 2025, many Singaporeans took to social media to share their thoughts.
Under a CNA Facebook post, more than 400 comments reflected scepticism about whether the Budget was truly generous.
Many netizens argued that the handouts and vouchers merely offset the rising cost of living rather than provide real relief.
Some pointed out that while the government gives out financial aid, it also raises costs through measures like the Goods and Services Tax (GST) and other taxes.
One noted that GST vouchers have been in place since 2012, yet the cost of living continues to rise.
A user highlighted that for 13 years, the government’s main strategy has been to give out small sums of money, only for prices to rise again.
Others expressed concern over the lack of long-term solutions, with one commenter suggesting that if such “generosity” is needed every year, it signals deeper systemic problems.
Election-Year Generosity?
Several netizens pointed out that increased handouts often coincide with election years.
One commenter remarked that it is normal when an election is around the corner, but once the election is over, the government will find ways to “collect back all the lost monies.”
Many expressed concerns that after the election, the government would introduce price hikes and tax increases to compensate for the generous Budget.
One user noted that while the Budget may provide short-term relief, the real impact would be felt over the next five years when costs inevitably rise.
One commenter suggested that the government is offering more because more voters are looking towards the other side.
Others noted that this cycle of election-year generosity is not new. One user pointed to the rising cost of living since 2020, arguing that essential items will see price increases after the election, making Singaporeans pay back three times what was given this year.
Another remarked that Singapore has become the most expensive city to live in, and every election year, citizens demand more handouts because of rising costs.
However, they argued that handouts are only a temporary solution and that the government repeats “the same old strategy every time.”
Netizens Call for Policy Review
Beyond concerns about election-year handouts, some Singaporeans criticised the Budget as a reflection of failed policies.
One commenter argued that if the government feels the need to distribute “freebies” before every election, it indicates severely failing policies.
They added that policymakers and elites are out of touch with the realities faced by ordinary citizens.
Some pointed out that the government appears to be addressing rising costs reactively rather than fixing underlying structural issues.
A commenter stated that if the government must give out handouts every year just to help citizens cope, “maybe it’s time to look at whether their policies are actually working.”
They argued that every policy has ripple effects and urged the government to walk the ground and reconnect with the people, warning that the gap between the government and citizens has become too wide.
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