SINGAPORE: Budget 2025 is a "feel-good" Budget that will sweeten the ground for the upcoming General Election, political observers said on Tuesday (Feb 18).

This year's Budget is more generous than previous Budgets in election years, such as in 2020 and 2015, said some political analysts CNA spoke to following the speech by Prime Minister and Finance Minister Lawrence Wong.

On Tuesday, Mr Wong, who is heading into his first election as Prime Minister, announced what he called "a Budget for all Singaporeans".

Budget "goodies" that Singaporeans have come to expect, such as Community Development Council (CDC) vouchers and rebates on utilities, were increased; and further topped up with SG60 credits and handouts in celebration of Singapore's 60th year of independence.

Large families with three or more children will get additional support to cushion the impact of rising costs, while businesses, hawkers and workers were not left out. 

Some analysts called the upsized S$800 CDC vouchers a "surprise".

"This Budget seems to be more generous and more inclusive, especially in the quantum of top-ups, vouchers and rebates that are being given," said Dr Teo Kay Key, a research fellow at the National University of Singapore’s (NUS) Institute of Policy Studies (IPS).

"The SG60 package is also more generous compared to SG50, which coincided with GE2015."

However, the election is not the sole factor for this year's bountiful Budget. Most analysts agreed that the rising cost of living is a pressing issue that the government is trying to address.

Dr Mustafa Izzuddin, a senior international affairs analyst at Solaris Strategies Singapore, said that the Budget is "incredibly generous" due to three factors coinciding this year: Concern about inflation, the SG60 anniversary and a General Election.

Dr Teo said that the Prime Minister also seemed to be focusing on ensuring that the Budget is an inclusive one for all Singaporeans, and showing that he is serious about "moving forward into the future without leaving any group or individual behind".

The various schemes indicate his intent to show that "regardless of background, ability, or personal history, Singaporeans have a chance to make a future in this country", she said.

Law professor Eugene Tan, from the Singapore Management University, said Budget 2025 addresses the social "as well as the economic" dimensions, seeking to balance dealing with immediate concerns such as the costs of living, and making sure Singapore lays the groundwork to deal with future challenges.

"In one word, bifocal, is how I would describe the Budget in this regard. It also attempts to recognise the concerns, needs, and aspirations of different generations as well as ensuring the equitable distribution of the country's wealth between those in public and private housing," said Prof Tan.

Dr Mustafa added: "Certainly, I think the Budget will sweeten the ground. It's meant to create a feel-good factor. And the hope is that this would continue into the campaign whenever the election is called."

TIMING OF ELECTION

The next General Election must be held by Nov 23. The "feel-good" factor is why Dr Mustafa thinks that the General Election will be called after April, but earlier rather than later this year.

He said that the announcements will take some time to be fully communicated and for the impact to be felt, but the feel-good factor also has a "shelf life" and starts to fade away after some time.

"So at the peak is when you want to hold the election ... I still think May, but July is a possibility because of what's going to be rolled out in that month," he said.

Dr Tan also said May could be "a window that the PAP government is seriously considering", with S$500 CDC vouchers landing that month, but July was also possible.

Political scientist Dr Chong Ja Ian said that there is a chance, with the bulk of benefits for Singaporeans coming in July, that an election could be called in September, but he did not rule out May.

"The May disbursement of the first tranche of CDC vouchers may suggest to some that an election could be in late May or early June, but the July disbursement of SG60 vouchers suggests a possible later election date.

"Perhaps the current administration is trying to hedge its bets. There is no clarity," said Prof Chong, who is from the National University of Singapore.

Independent political observer Dr Felix Tan pointed out that the handouts from Budget packages were "well spaced out" over the year.

"I think we can speculate, but I'll rather not," he said.

"It could be in May, it also could be after July ... or shortly after National Day period as well. But I don't think (when the disbursements are) will have a huge impact on when exactly the General Election will be held."

A few analysts noted that the Budget focused more on the short- and medium-term, rather than long-term plans.

Prof Chong said: "I found it interesting that the 2025 Budget proposed no particularly big plans for Singapore going ahead."

Dr Mustafa agreed, but he added that this was not unusual for an administration near the end of its current term.

"It would very much balance itself out when it comes to the next Budget," he said.

Despite the generous handouts, two of the analysts did not think it would move the needle much in terms of voter sentiment.

SMU's Prof Tan felt that while the grants and subsidies will help to some extent, they cannot address the "dominant belief that Singapore has become too expensive", even for Singaporeans.

"The irony of the handouts is that the Budget statement seems to confirm this perception," he said.

Such help could be seen more as "band-aid", he added.

Dr Felix Tan said: "I think those who have made up their mind would have already made up their minds despite whatever is being announced in the Budget.

"Those who are sitting on the fence might welcome this, but it might not necessarily change their voting patterns."