08s6f econ blog
Monday, April 14, 2008
More public assistance schemes
Weekend TODAY April 12-13 pg 3
COME May, recipients of public assistance (PA) can expect to receive more money for their daily needs.
The increase in PA rates has been brought forward from July 1 to May 5, the Ministry of Community Development, Youth and Sports (MCYS) announced on Friday.
Under the new rates, PA recipients will receive a rate increase of between $40 and $165 a month, depending on their household type.
Instead of getting $290 a month, an elderly recipient living alone will receive $330 a month.
A family of four will see a rate increase of $165 a month to $1,020, reported Channel NewsAsia.
MCYS said it expects to spend around $64 million this financial year to help needy Singaporeans under the various ComCare programmes.
"In the face of rising food prices, the ministry is most conscious of the PA recipients.
"We want to give them an extra two months because there is a need," said the Minister for Community Development, Youth and Sports, Dr Vivian Balakrishnan, on Friday.
The increase in PA rates is the latest in a series of measures announced recently to help lower-income families cope with rising inflation, which could go as high as 5.5 per cent this year.
On Thursday, the National Trades Union Congress announced that it would give out $4 million worth of discount vouchers to less well-off workers in the form of 5 per cent discount vouchers.
The MYCS is also planning to set aside at least $1 million from the ComCare fund to help needy families make ends meet.
-- In light of the rising food prices and increasing inflation, the government can be seen doing its best to provide for the lower-income families. With reference to the previous post, food and other basic commodities are price INelastic and more needy families are fretting over their expenses. As recipients of PA are getting more monetary aid, coupled with other schemes like food vouchers, they would be able to set aside an appropriate proportion of their income on basic necessities and so-called 'make ends meet'.
If the government has planned to carry this policy forward, it shows that they are getting increasingly worried that the repercussions of inflation are surfacing more quickly than expected. Nevertheless, I feel that the government is wise as Central Singapore District Mayor Zainudin Nordin puts it, 'Rather than react when they really feel the pinch, we can now be proactive in helping them with the funds from ComCare.'
As seen from the article, the government is putting aside more money to provide for financial aid, so will this burden rub off onto the working population? Also, is Singapore becomming more and more like a welfare state? There may be a possibility that the working population will be taxed a little more, or that other development projects will have to be forgone. Though thankfully Singapore will never desire to become a welfare state and these schemes may revert back to the original once inflation curbs.
Jason
(feel free to correct me or add on to the points =] thx)
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