Like how the recycling of land makes for a fair and just Singapore because every generation of Singaporeans can own their homes, the equal division (50:50) of NIRC to spend on current and future generations is a fair way of taking care of all Singaporeans.
Not less is spend on current Singaporeans. Not more is saved for future generations. 50:50. Fair and equal.
The WP wants more for today. They want more than just 60% to 70% of NIRC. They also want land sale proceeds.
Constitution allows the government to spend up to 50% of NRIC. For the past few years, the Government HAS spent almost 50%.
Let's do some simple math.
For FY2022, the NIRC is $21.6 billion representing approximately 50%.
If $21.6 b is 50%, then 100% is $43.2 b
If we follow WP's suggestion of using 60% of NIRC:
that's equal to $25.92.
On top of this, WP also want direct use of land sale proceeds.
Sales of land for FY2022 is estimated at $11.2 billion.
So (11.2 + 25.92) = $37.12 billion
WP wants to spend $37.12 from NIRC and reserves (land) and leave $17.28 to reinvest for the future.
What if they want 70% of NIRC?
That will be $30.24 billion.
Add land sale of $11.2 billion.
The total they want to spend is $41.44 billion.
And how much of NIRC will be left to reinvest for the future? $12.96 billion.
This is what Leon Perera called 'slowing the growth' of reserves.
Slower growth means smaller returns. It's as simple as that.
You will have to pay higher taxes because you will have less from NIRC.
Constitution allows the government to spend up to 50% of NRIC. For the past few years, the Government HAS spent almost 50%.
Let's do some simple math.
For FY2022, the NIRC is $21.6 billion representing approximately 50%.
If $21.6 b is 50%, then 100% is $43.2 b
If we follow WP's suggestion of using 60% of NIRC:
that's equal to $25.92.
On top of this, WP also want direct use of land sale proceeds.
Sales of land for FY2022 is estimated at $11.2 billion.
So (11.2 + 25.92) = $37.12 billion
WP wants to spend $37.12 from NIRC and reserves (land) and leave $17.28 to reinvest for the future.
What if they want 70% of NIRC?
That will be $30.24 billion.
Add land sale of $11.2 billion.
The total they want to spend is $41.44 billion.
And how much of NIRC will be left to reinvest for the future? $12.96 billion.
This is what Leon Perera called 'slowing the growth' of reserves.
Slower growth means smaller returns. It's as simple as that.
You will have to pay higher taxes because you will have less from NIRC.
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