Readers' comments:

I am really dissappoined to see that there's nothing for the ordinary housewife who is not working."

"I would feel that the extent of the reduction in car prices (as a result of tax cut and increase in COE supply) is a little overdone."

A budget to prepare S'poreans for the future
A wrap-up on the highlights of the Budget Speech 2007 given by Second Finance Minister Tharman Shanmugaratnam in Parliament today.

Corporate tax cut to 18%, tourism cess abolished
Singapore will cut corporate income tax by two percentage points to sharpen its competitiveness. In another signficant move, it will abolish the 1 per cent tourism cess levied by food and beverage outlets.

GST to go up 2% to 7% from July - in one step
Move will prevent profiteering, and there will be a substantial offset package.

Employer's CPF contribution to go up to 14.5% from July 1
1% will go into CPF ordinary account and the 0.5% will go into Medisave.

More funds for healthcare
In the next five years, healthcare spending is likey to hit about $3 billion a year, compared to the current $2 billion.

S'pore government to invest more in the people
Education and R&D will be top priority and will get more funding to promote lifelong learning

CPF hike will cost employers $600 million more per year
Employers will pay $600 million more per year because of of the increase in their Central Provident Fund contribution rate for workers from 13 per cent to 14.5 per cent from July 1 this year.

Pre-GST buying frenzy unlikely
Singporeans interviewed by AsiaOne do not think the extra two per cent, bringing the GST to 7 per cent, would burn a hole in their wallets, given the generous offset package.

How will your household be affected?

Of this $4 billion, $1.8 billion will be given out as cash, in the form of GST Credits. All adult Singaporeans will receive GST Credits in annual instalments. Lower-income Singaporeans and senior citizens will be given more GST Credits.

Singaporeans aged 55 and above will receive a Senior Citizens' Bonus, as long as they have annual assessable incomes of $100,000 or less.

NSmen and NSFs, including those aged below 21, will also get an additional $100 of GST Credits.

Utilities-Save, S&CC and Rental Rebates will be extended to eligible HDB households for five years, from 1 April 2007 to 31 March 2012.

Govt will provide the restructured hospitals and polyclinics with more grants to fully absorb the additional GST on subsidised healthcare services.

Govt will absorb GST payable on school and miscellaneous fees, as well as fees and tuition grants at ITEs, polytechnics and universities.

Town councils will also get an additional $10 million a year to absorb the additional GST payable on Service and Conservancy Charges.