Budget 2009

You might have heard your parents talking about the 2009 Budget over the last few weeks. However, what is this budget that they are all talking about?

A budget is the amount of money that you plan to spend on something. For instance, if you have a budget of $2 for lunch, that means you only intend to spend a maximum of $2 for lunch.

Each year, the Singapore government announces what it intends to spend for the year in its budget. People want to know how much the government is planning to spend and what it is spending on in the coming year as it might help them plan their businesses and make better choices in the year ahead.

What the government spends on can help businesses and families in need.

For example, in the 2009 Budget, the focus was on jobs. Because of the current economic recession, many people have lost their jobs. To try and persuade less companies to retrench their employees, the Government has introduced a Jobs Credit scheme. Under this scheme, the Government willl give companies some money if they keep their workers.

What is very special about Budget 2009 is that it is the very first time that the Government is taking money out of its Reserves, which is like our national piggy bank. For many people, this shows how bad the current recession is.

As primary school children, you may not be earning money yet, but how has this knowledge about the 2009 Budget changed your view of spending?

More details about the Singapore Budget 2009 can be found at http://www.singaporebudget.gov.sg/key_initiatives/index.html