Singapore announces plan to pay bonus to all citizens after surplus budget of almost $7.6 billion. All Singapore citizens aged 21 and above will get a one-off “SG Bonus” of up to S$300 each as the 2017 budget came in with a surplus of almost S$10 billion (US $7.6 billion).
Finance minister Heng Swee Keat made the announcement during his budget speech in Parliament, describing the bonus as a “hongbao”, the Mandarin word for a monetary gift given on special occasions. He said this “reflects the government’s long-standing commitment to share of the fruits of Singapore’s development with Singaporeans”, according to Channel News Asia.
The “SG Bonus” will cost the government S$700 million (US $533 million). The bonus will be paid according to people’s accessible income. About 2.7 million people will get the payouts, which are due by the end of 2018. Those with an income of S$28,000 or below will be eligible to receive S$300, those whose incomes ranging from S$28,001 to S$100,000 will receive S$200, and those with incomes in excess of S$100,000 will receive S$100.
Singapore’s revised budget for fiscal 2017 showed a surplus of S$9.61 billion, thanks to contributions from statutory boards and higher-than-expected stamp duty. The surplus will also be used in other ways. Heng said S$5 billion will be set aside for the Rail Infrastructure Fund to save up for new railway lines that Singapore is building. Another S$2 billion will be set aside for premium subsidies and other forms of support for Eldershield, an insurance scheme that helps senior citizens with severe disabilities to cope with the financial demands of their daily care.
Singapore is an example of a nation that became something out of nothing. With good managerial kills and political will, Singapore was able to turn an already doomed future around in the 70s, and now they have become a country to recon with.
Singapore became an independent republic in August 9th, 1965. Facing severe unemployment and a housing crisis, Singapore embarked on a modernization programme beginning in the late 1960s through the 1970s that focused on establishing a manufacturing industry, developing large public housing estates and investing heavily on public education.
By the 1990, the country had become one of the world’s most prosperous nations, with a highly developed free market economy, strong international trading links, and the highest per capita gross domestic product in Asia outside Japan.
