IB Economics HL IA (2020) – Microeconomics (7점)

Govt to beef up preschool subsidies for middle-income families from 2020

SINGAPORE — To soothe concerns over the cost of preschool education, the Government will beef up subsidies — including for middle-income families — as it seeks to make the provision of support closer to that of public housing and healthcare. It will also more than double its spending on early-childhood education, from about S$1 billion a year today, in order to raise the share of preschool places that are government-supported from just over 50 per cent to 80 per cent. At the National Day Rally on Sunday (Aug 18), Prime Minister Lee Hsien Loong said that the authorities would raise the income ceiling for families seeking to qualify for more preschool subsidies.

Today, families with a monthly household income of up to S$7,500, and with mothers or single fathers who work at least 56 hours a month, are eligible for extra subsidies. The income ceiling will be raised to S$12,000, bringing another 30,000 households into the fold from next year, Mr Lee said at the rally, which is widely seen as the most important political speech of the year. Right now, households receive a S$300 basic childcare subsidy, and up to S$440 in additional childcare subsidies, which are means-tested. Mr Lee said that across the board, the amount of preschool subsidies will also rise, although he did not give details…