While some of the spending expands existing programs, such as healthcare subsidies, others offer fresh funding, such as a 1,200 Singapore dollar (around $950) a year payment to families to help in covering the cost of care for disabled elderly relatives.
On the other end of side of the equation, the government is introducing higher duties on betting, tobacco and liquor.
Tobacco taxes will rise by 10 percent, liquor taxes will rise by 25 percent across the board and the betting duty rates will rise to 25-30 percent of gross bets at Singapore Pools, effective immediately.
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"I'm…surprised that pressure on the government to squeeze more from wealthier households means higher sin taxes, rather than through wealth taxes, which were expected to be tweaked," Song Seng Wun, an economist at CIMB said.
The boost in social spending comes as the city-state faces increased discontent over social inequality and a rising cost of living. Despite exceptional levels of wealth in the Southeast Asian financial hub, it has among the highest levels of income inequality among the world's advanced economies.
Its Gini coefficient – which measures the degree of inequality within a country where zero is complete equality and one is maximum inequality – rose to 0.478 in 2012. By comparison, Denmark, among the world's most economically equal countries, had a Gini coefficient of 0.248 as of 2011.
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Rising healthcare costs have been a particularly touchy issue. By international standards, government healthcare expenditure in Singapore is low, with out-of-pocket expenses comparatively high. The country's healthcare expenditure stood at an estimated 1.5 percent of gross domestic product (GDP) in 2013, far below the average of 7.7 percent in high-income economies as of 2010.
Economists say it is a balancing act for the government: showing that it is keen to address wealth inequality while maintaining the country's appeal to foreign businesses on which it relies to fuel economic growth. This is particularly important given the population's aging demographics.