Singapore Budget 2018: Adult Singaporeans to get SG Bonus of up to $300 after $9.6b budget surplus

SINGAPORE – Adult Singaporeans will get a one-off “SG Bonus” this year, ranging from $100 to $300, depending on their income.

The bonus comes as the Government expects an overall budget surplus of $9.6 billion, or 2.1 per cent of GDP, for the 2017 financial year, Finance Minister Heng Swee Keat said on Monday (Feb 19). .

The surplus is markedly higher than the $1.9 billion forecast a year ago, mainly because of “exceptional” Statutory Board contributions of $4.6 billion.

These contributions are mainly from the Monetary Authority of Singapore on the back a rally in global stock and bond markets in the second half of FY 2016, and increased stamp duty collections of $2 billion due to the property market pick-up.

“We do not expect either to occur every year,” said Mr Heng. “It is not a structural surplus.”

Some of this year’s surplus will be put aside for future spending, including $5 billion for the Rail Infrastructure Fund, which will be launched this year to save for major upcoming rail lines.

There will also be $2 billion earmarked for premium subsidies and other forms of support for Singaporeans when the ElderShield review is complete.

The final allocation is the $700 million to fund the one-off SG Bonus for Singaporeans over 21 in 2018.

Those with an assessable income of $28,000 and below last year will get $300; $200 goes to people earning $28,001 to $100,000; and $100 for those earning more than $100,000 or who own more than one property.

The budget for the 2017 financial year remains expansionary for the domestic economy, said Mr Heng, who expects a basic deficit of $1 billion, or 0.2 per cent of GDP, once the Net Investment Returns Contribution and top-ups to funds have been excluded.

The budget position will continue to be expansionary in the 2018 financial year.