Monday, February 23, 2015

Singapore Budget 2015 - I Am Not Too Excited About It!

Budget 2015
A couple of hours ago, Singapore's Deputy Prime Minister and Finance Minister, Tharman Shanmugaratnam has just delivered the highly anticipated Budget 2015. Deemed the most generous Budget in the recent years (since the Global Financial Crisis),  With a proposed overall deficit of S$6.7 billion.

Something new, something old and something for everybody (hopefully)! Personally, I was not overly excited by this year's Budget, in fact, my company surprised me more (pleasantly) in this year's 开工红包 (red packet) ;-)

Anyway, thought it is good idea to share some of the key measures of this year's Budget here : 

1. SkillsFuture Credit: 
My view : I like this innovative measure as personally I am for lifelong learning. Although not all citizens might make full use of this benefits but it will still be something for those who are keen to learn new skills/knowledge.

2. CPF Changes - Increase of Salary Ceiling, Contribution Rate and Interest Rate: 

My view : Some employees/employers might not happy with the raise of salary ceiling as it would means lesser take-home pay (and more employer contribution to employee's CPF). Personally, I will be affected but am happy lock more fund in my CPF for retirement. As for the raise interest rates for older workers, it is a great improvement.

3. Enhanced GST Voucher Scheme:
My view : Just a marginal improvement so not much excitement here. 

4. Personal Income Tax and Service and Conservancy Rebates: 
My view : Find the the Personal Income Tax rebate of 50% is very generous but thought it will be even better if the cap can be raised to say $1,500 or $2,000. Well, beggar cannot be chooser ;-) As for the Service and Conservancy Rebates, as I am staying in 5-Rm HDB and hence adversely affected by this change ;-(

5. Raise of Personal Income Tax Rates for top earners :

My view : To strike a balance, someone has to give more (to ensure that the other can get more)! So, thought this is a logical measure.   

6. Raise of Petrol Duty and Road Tax Rebate as well as Reduction of Foreign Domestic Worker (FDW) Levy:
My view : Personally not benefited from all the above (as I got no car nor maid) but guess will benefits others (especially those with kids/seniors at home) 

(Images source: MOF (Ministry Of Finance, Singapore))
Note : The above are just some key highlights and not the complete list of Budget 2015! 

Are you happy/excited about this year's budget? 



  1. Hi Richard,

    Happy new year to you! 5 room households will get 1.5months of the conservancy rebates so I don't think you can say that you are adversely affected =D

    1. Jes : Is that so? That means MOF's slides is providing incomplete critical information then ;-) Thanks for highlighting..


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