With
an election looming this year, the senior citizen population in
Singapore are going to get a generous package in the upcoming budget,
according to analysts familiar with the matter. The population in the
country is getting on in age quite fast, and the budget is possibly
being framed with one eye on the election. Although taxes in
Singapore are low, living costs have continued to rise in one of the
world’s biggest financial hubs, and consequently, the senior
citizen population has been forced to work well past the conventional
retirement age. This situation has led to a lot of anger and
resentment on the part of the elderly, which is why the upcoming is
going to be quite a generous one for the section of the population.
The
Singaporeans born in the 1950s or the so-called ‘independence
generation’ has been chosen for special treatment this year as the
country readies itself for an election this year. Direct benefits
transfer and rebates have been part of budgets in election years
before, but this is possibly going to be different. As the country
clamps down on immigrant labor, the need to keep the senior citizens
in the workforce is more important than ever. Life expectancy stands
at 83 in Singapore. Additionally, birth rates are falling as well and
hence, the provisions for the elderly in the February 18 budget is
not a huge surprise.
Other
than direct or indirect benefits, the Singaporean government is also
going to unveil plans to launch drives that will help senior citizens
in different industries in enhancing their skills. Before the
elections in 2015, the government had announced a scheme by way of
which pensioners with low income were going to get regular payments
from the government. Additionally, an S$9 billion scheme was launched
to take care of the healthcare costs of senior citizens, and
according to analysts, such a scheme could be introduced in the
upcoming budget as well.
Although
there is widespread concern about the rise in public spending in a
low tax country like Singapore, analysts believe that the country has
enough legroom to continue with their spending and much of that has
to do with the fact that the country has recorded a fiscal surplus
over the past three years. The total fiscal surplus stood at S$19
billion, and it is no surprise that the lawmakers are comfortable
with this initiative in this year’s budget. Barnabas Gan, who is an
economist at United Overseas Bank, said, “Notwithstanding the
prospect of a pre-election budget, the need remains for Singapore to
stay business relevant and education supportive amidst the ongoing
uncertainties in the global economic space.”
