4.1 Mr Speaker, Sir. We want to make Singapore the best home for all Singaporeans. This is a home where everyone has a place and a purpose, where opportunities abound, and where growth and prosperity is for all to share.

4.2 The Government has made a practice of periodically sharing its budget surpluses with Singaporeans. In 2001, we distributed New Singapore Shares (NSS) to every citizen. In 2003, we gave Economic Restructuring Shares (ERS) to offset the increase in the Goods and Services Tax (GST). And in difficult times, we have cushioned the impact on lower-income Singaporeans through rebates and assistance measures. We have also made many CPF top-ups to help older Singaporeans meet their retirement and healthcare needs. Taking all these measures together, the Government has shared nearly $8 billion of surpluses with Singaporean individuals and households in the past five years (FY01-FY05). We will continue to share surpluses in an equitable way so that all citizens benefit from the nation’s progress.

4.3 After the last general election in 2001, we ran budget deficits for several years. We now have a modest budget surplus in FY2005 and project another surplus (before Special Transfers) for FY2006. We also have some capital receipts from our Statutory Boards, as well as investment income from the transition year of 2001, a portion of which accrued to the current government when it took office. Thus we have managed to accumulate some reserves over this term of Government. In view of the good economic performance last year and the positive outlook, I have decided to share part of these surpluses with Singaporeans this year.

4.4 I will call this surplus sharing initiative the Progress Package (Providing Opportunities through Growth, Remaking Singapore for Success). This is a package for everyone, but it aims to achieve specific social objectives. It will benefit all Singaporeans, because everyone contributed to our economic restructuring efforts and should now share in the fruits of growth. However, I will weight it more towards the lower-income groups, in line with our philosophy that we should progress together as one people. Low-wage workers will receive more, to reward them for their efforts and encourage them to be self-reliant. I will also give more to older workers and retirees; they are most affected by the dislocation and uncertainty of economic restructuring, and most worried about medical costs and retirement expenses. They have made significant contributions to building today’s Singapore; we must not forget their efforts. I will set aside something for education, because children are our hope for the future. And finally, we must also remember the sacrifices of the generations of NSmen who have safeguarded our security over the past 40 years, and enabled us to build a stable and prosperous Singapore.