The residential property tax revisions at Budget 2022 meanwhile have a broader catchment, and are estimated to net S$380 million more a year, with the top 7 per cent of owner-occupied properties and all non-owner occupied properties affected.
Budget 2022 takes a further step in this direction by augmenting existing pillars of social support. Lower-wage workers stand to benefit from the expansion of progressive wages and the enhancement of the Workfare Income Supplement. to co-fund the wage increases of lower-wage workers between 2022 and 2026 will require about S$1.8 billion a year.
Together with the enhanced Workfare, this will cost S$9 billion over the next five years, compared with current expenditure on Workfare of around $850 million a year, excluding special payments. By leveraging technology and behavioural insights, and reviewing organisation and processes, the public sector can raise efficiency in service delivery further still and contribute significantly towards keeping state finances on an even keel even as demands on the public purse expand.