Budget 2021: A 5-Digit GST Voucher Boost for Singaporeans

Introduction

The Singapore government has announced a slew of measures in Budget 2021 to provide financial assistance to Singaporeans amidst the ongoing COVID-19 pandemic. One of the key measures is the enhanced GST Voucher (GSTV) scheme, which will benefit over 1.4 million Singaporean households.

Enhanced GST Voucher Scheme

The GSTV scheme provides cash assistance to lower- and middle-income Singaporeans to offset GST expenses. For Budget 2021, the scheme has been enhanced as follows:

• Additional $500 GSTV Cash Payout: All eligible households will receive an additional $500 GSTV cash payout in May 2021.
• Increase in GSTV Quantum: The monthly GSTV quantum will be increased by $20 to $80 for all eligible households from July 2021 to December 2021.
• Extension of GSTV Period: The GSTV scheme will be extended for another 5 years, from 2021 to 2025.

Eligibility Criteria

To be eligible for the GSTV scheme, households must meet the following criteria:

• Singapore Citizen or Permanent Resident (PR)
• Residing in Singapore for at least half of the calendar year
• Household income does not exceed $28,000 per annum
• Household members are not already receiving other government subsidies, such as the Workfare Income Supplement or the Silver Support Scheme

Benefits of the Enhanced GSTV Scheme

The enhanced GSTV scheme will provide significant financial relief to Singaporean households, especially those with lower incomes. The additional $500 GSTV cash payout and the increase in monthly GSTV quantum will help to offset GST expenses, such as groceries, utilities, and other essential goods and services.

Total Value of GSTV Scheme

The total value of the enhanced GSTV scheme for the period of 2021 to 2025 is estimated to be around $6.6 billion. This is a significant investment by the government to support Singaporeans during this challenging period.

Table 1: GSTV Cash Payouts and Monthly GSTV Quantum

Table 2: GSTV Eligibility Criteria

Table 3: GSTV Impact on Household Savings

Table 4: GSTV and Other Government Support Measures for Households

Conclusion

The enhanced GSTV scheme is a significant and timely support measure that will provide much-needed financial relief to Singaporean households during this challenging period. The government's commitment to supporting Singaporeans is evident in the substantial investment made in the GSTV scheme and other support measures.

In addition to the specific measures announced in Budget 2021, there are several key areas where the government could further consider providing support to Singaporeans:

• Enhanced Training and Retraining Programs: To help Singaporeans develop new skills and adapt to the changing economy, the government could enhance training and retraining programs to make them more accessible and affordable.
• Expansion of Housing Support: To address the needs of low-income households, the government could expand housing support programs, such as the Home Improvement Program and the Silver Housing Bonus.
• Affordable Healthcare: To ensure that Singaporeans have access to affordable healthcare, the government could explore expanding subsidies for medical treatments and medications.