'We take it one step at a time. The Budget is not over yet. Let's focus on the content of the Budget first and we will naturally have some plans later,' he said in Mandarin on Thursday when asked about it.

Mr Lee, who visited those who were working at Changi Airport's Terminal 3 on the first day of the Chinese New Year, declined to comment further.

The Budget will be presented next Friday, and Members of Parliament will debate Government spending for the coming fiscal year over two weeks starting Feb 25.

When the Prime Minister's Office announced last November that Mr Tharman Shanmugaratnam would take over as Finance Minister from Dec 1, its statement said that he would remain as Education Minister until after the upcoming Budget debate. The statement said Mr Tharman will then relinquish the appointment 'and the Prime Minister will make consequential changes to other Cabinet appointments'.

PM Lee also responded to questions on preparing for a fourth-generation of political leaders. Both Senior Minister Goh Chok Tong and Minister Mentor Lee Kuan Yew spoke recently about its importance and PM Lee agreed with them.

'It's a very important issue, and an urgent one and you have to get the next generation lined up so that when people look forward, they know what they can expect Singapore to be like and what sort of leadership Singapore will have well into the future,' he said. 'And I think Singaporeans want to see that too.'

Asked whether the current Cabinet already has part of the members of the fourth-generation team, he said: 'I think the Cabinet always has a core team of leaders but we always need to strengthen it. That's why we are still working it out.'

zakirh@sph.com.sg