SINGAPORE: Singapore plans to splash out $2.5 billion in 2011 to boost the living standards of lower-income workers ahead of elections expected within the next year. Singapore's 2011 national budget will target lower- and middle-income workers with tax cuts and rebates, subsidy increases and cash handouts, Finance Minister Tharman Shanmugaratnam said in parliament Friday. Altogether they will cost 3.2 billion Singapore dollars ($2.5 billion). The ruling People's Action Party, which has held power since Singapore split from a short-lived federation with Malaysia in 1965, has traditionally boosted public spending before a general election. Analysts expect the PAP to maintain its overwhelming majority in parliament at elections that must be called by February 2012. But if poorer Singaporeans who feel left out of the country's prosperity bring their discontent to the polls, the ruling party could find itself with a weaker mandate. Tharman said he expects a budget surplus including investment returns of SG$100 million this year from a deficit of SG$300 million last year. Singapore's economy soared 14.5 percent last year.
