Deep Dive Budget 2025 is more than just an election budget
Feb 19, 2025
Annie Koh, Professor Emeritus of Finance at Singapore Management University, teams up with Assistant Professor Chua Yeow Hwee to unpack the implications of Budget 2025. They reveal how the budget's generous provisions aren't merely election gimmicks but crucial responses to the cost of living crisis. The conversation covers the balance of supporting families in a declining birthrate environment, the economic impact of community vouchers, and the strategic shift towards innovative and sustainable energy solutions.
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Short-Term vs. Long-Term Solutions
- The government is tackling cost of living with vouchers, but these are short-term solutions.
- Long-term solutions involve job assurance, training, and increased productivity for higher wages.
Inflation vs. Price Levels
- Inflation, a rate of price change, can decrease while prices still rise.
- Falling inflation doesn't mean lower prices, just a slower price increase.
CDC Vouchers: Not an Entitlement
- Don't normalize CDC vouchers; they're meant for support, not entitlement.
- Increased skills and income should aim to eliminate the need for these vouchers.