On 16 February 2024, Deputy Prime Minister (DPM) and Finance Minister Lawrence Wong delivered the Budget 2024 Statement in Parliament.
After he mentioned things like an additional $600 Community Development Council (CDC) vouchers, cost-of-living special payment, and personal income tax rebate, I’m sure we’re all excited for the “angbaos” to start rolling in.
But wait, Budget 2024 is actually not confirmed yet.
Reader: Huh? DPM Wong already talked for almost 100 minutes in Parliament and you’re telling me that Budget 2024 is not confirmed?
Yeah.
That’s why DPM Wong started his speech with “I beg to move that Parliament approve the financial policy of the Government for the financial year 1 April 2024 to 31 March 2025,” – because the Budget has not actually been confirmed yet; it still needs approval.
The Budget 2024 Statement is the speech DPM Wong delivered in Parliament last Friday. Think of his speech as a proposal – it’s just a plan that has yet to be confirmed.
You might be wondering why Budget 2024 hasn’t even been confirmed when we’re already reaching the end of February, right?
Well, that’s because Singapore’s Budgets actually follow the financial year instead of the usual January to December year that we follow for everything else.
A financial year starts on 1 April and ends on 31 March the following year. So, Budget 2024 is set to start on 1 April 2024, and will conclude on 31 March 2025.
Although the Budget 2024 Statement was made in February this year, discussions have been ongoing about it as early as April 2023 – a whole 10 months ago. During these discussions, the Government considered our national priorities, how to manage limited resources, what trade-offs had to be made, and the financial viability of their plans.
After all, we cannot anyhow spend money like ah sia kia.
After discussions throughout 2023, pre-budget engagements with members of the public began in December 2023. Individuals, organisations, and businesses were welcome to share their views and provide suggestions for Budget 2024 via offline and online channels. The feedback gathered from members of the public was then reviewed, which helped to shape the eventual Budget line-up.
Once the Budget was ready, the Cabinet had to approve the Budget before Cai Shen Ye Lawrence Wong could deliver the Budget Statement and introduce the Supply Bill last Friday. The Cabinet comprises Prime Minister Lee Hsien Loong, DPM and Finance Minister Lawrence Wong, and DPM and Coordinating Minister for Economic Policies Heng Swee Keat, among 16 others.
The Parliament will debate the Budget Statement and will gather again shortly after for the Round-Up Speech.
How the Budget Works
Think of it this way – after a company’s CFO announces how much it plans to allocate to each department for the next financial year, the various departments will tell shareholders how much they intend to spend and what they intend to spend on. This will spark debates as departments try to convince shareholders why they need a certain amount of funding to do a certain thing. After they debate, they’ll gather again to finalise plans.
Last year, the Budget 2023 Statement was delivered on 13 February 2023, followed quickly by the Round-Up Speech on 22 February 2023.
After DPM Wong delivers the Round-Up Speech, which we can expect in the next week or so, clarifies MP queries, and sums up the Budget, the entire Parliament will then sit as a Committee of Supply and examine each ministry’s plans.
Again, think of DPM Wong as the CFO and ministries as departments in a company.
The Committee of Supply will carefully scrutinise each ministry’s plans to make sure that the funds will be put to good use in the coming financial year.
This is when some ministries will reveal some new plans to the committee, since these plans need funds and they must be debated before they’re approved.
We not Ah Sia Kia.
After the Committee of Supply concludes, DPM Wong will deliver the second and third reading of the Supply Bill.
Seems like DPM Wong is a busy man. A very, very busy man.
This is followed by Parliament voting on the Supply Bill. While it’s possible for the Parliament to vote against it, it is not likely. Not passing the Bill means that citizens have no “confidence” in the government, like how shareholders don’t agree with the CFO.
A bit jialat if this happens ah, not a good look. So yeah, it is likely that the Bill will be voted in.
President Tharman Shanmugaratnam, who was elected as Singapore’s President last September, will then be asked to assent to the Supply Bill. If he assents to it, the bill will become a law called the Supply Act, which will control the government’s spending in the upcoming financial year.
It’s basically big boss saying yes to the plans.
The government will be busy during this period, but so will members of the public.
While parliament members are busy debating and DPM Wong is delivering his 243974th speech, members of the public will be able to share their opinions and thoughts.
Following the Budget 2024 Statement on 16 February, REACH, the Government’s feedback and engagement unit, will hold a series of engagements for the public to share their views on the Budget 2024 Statement.
Physical REACH Listening Points will be set up on 28 February, 2 March, 3 March, and 12 March at various locations in Singapore. Visit this website to see the venue and timing of each session.
For those who do not attend REACH Listening Points, you are still welcome to share your views via online feedback channels. The People’s Association (PA) and its grassroots organisations will also reach out to Singaporeans via digital Ask Kopi Kakis #shareyourviews engagement platforms and physical touchpoints at the heartlands to seek their views and suggestions for Budget 2024.
This feedback exercise engages Singaporeans to share their opinions on Budget 2024 and have meaningful discussions. It ensures the voices of the people can be heard and considered when the Government is finalising Budget 2024.
After all the discussions have been concluded and President Shanmugaratnam has assented to the Supply Bill, the Supply Bill will be enacted as the Supply Act by 31 March 2024, in time for the upcoming financial year.
Most people only pay attention to what “angbaos” they’ll receive from Budgets every year, and don’t realise that there are so many important things going on in February and March leading up to the finalised Budget.
Well, now you know all about the Budget process and you can even bring your friends and family along to voice out your opinions at Budget discussions in the upcoming weeks.
The Committee of Supply should be gathering soon, too, so look out for that.
If this is still confusing to you, watch this video as a blue cat simplify everything for you:
Watch this for a complete summary of what REALLY happened to Qoo10, and why it's like a K-drama:
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