Feb 24, 2014

Singapore Budget 2014: Pioneer Generation Fund versus Citizen Dividend Fund

The Singapore government sets aside $8 billion in a "Pioneer Generation Fund" to help the special group of "Pioneer Generation" old people. There are about 450,000 in this special group. The Fund is expected to last for decades, until the last of them expires.
We will therefore set aside monies in Budget 2014 that will enable us to meet the full projected cost of the package. We will create a Pioneer Generation Fund for the purpose and set aside $8 billion into the Fund. The $8 billion, with accumulated interest over time, will be enough to pay for the full projected cost of the package, including a buffer for inflation.
This is not a citizen dividend fund. It is used for additional medical subsidies for this group of pioneer generation.

Let us compare this amount with the citizen dividend that each Singaporean has a right to.
The citizen dividend is easily $10,000 a year for each Singaporean.

450,000 pioneer generation should have a right to $4.5 billion in just one year.
In two years, they should have the right to $8 billion.

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