This is why treating land sale proceeds as revenue for government expenditure is a bad idea

 

Every policy proposal will have an impact on our lives.

What's the impact of treating land sale proceeds directly as revenue for government spending?

We can look at the example in Hong Kong where land sale proceeds are revenue for the government to spend. Hong Kong has the most expensive property market in the world with a lease of 50 years, half of Singapore's 99 years. Many Hong Kongers will outlive the lease of their flat.

If you are already complaining about the affordability of HDB flats, you will be hurt even more if a government decides to treat land sale proceeds as revenue for spending.

Such a policy prioritises land sales for fiscal needs instead of actual developmental needs, as is the case in Hong Kong.

It also subjects government revenue to the boom and bustsnof the property market. In a downturn, government revenue goes down at a time when it needs more money to spend. And that's bad for citizens.