The WP wants more to spend today, less to save for tomorrow

 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. 

50:50 division of NIRC takes care of both the present and the future Singaporeans in a fair way.

It is said that without a vision, the people perish. Visionary leaders take care of the present with their eyes on the future as well so that the people can be future-ready.

A 50:50 division of NIRC takes care of both the present and the future Singaporeans in a fair way.

PSP wants a 100% use of NIRC. The WP wants 60%, even 70% use of NIRC.

Today, the NIRC contributes more than $21.6 billion (FY2022) to the budget.

Our forefathers did not spend the NIRC.

𝐒𝐔𝐏𝐏𝐎𝐒𝐄 𝐎𝐔𝐑 𝐅𝐎𝐑𝐄𝐅𝐀𝐓𝐇𝐄𝐑𝐒 𝐇𝐀𝐃 𝐓𝐇𝐄 𝐒𝐀𝐌𝐄 𝐌𝐈𝐍𝐃𝐒𝐄𝐓 𝐀𝐒 𝐓𝐇𝐄 𝐖𝐏

Suppose because they spent from the NIRC and as a result, today we have 20% less NIRC to spend.

20% of $21.6 billion is $4.32 billion.

The 2% GST hike is intended to raise $3.5 billion.

If our forefathers had the mentality of the WP, today, we will need to raise $7.82 billion instead of $3.5 billion because we have less in NIRC to spend.

The GST hike will have to be more than 2% to achieve $7.82 billion.

You will have to pay a hike of more than 4%.

You will be paying 11% GST or more instead of 9%.

This is what will happen if the WP's proposal to spend more from NIRC is adopted.

Spending more from NIRC means reinvesting less resulting in smaller growth (slow the growth, says Leon Perera) and therefore smaller gains for the future.

𝐓𝐡𝐞 𝐖𝐏 𝐩𝐫𝐨𝐩𝐨𝐬𝐞 𝐭𝐨 𝐭𝐚𝐤𝐞 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐛𝐮𝐫𝐝𝐞𝐧 𝐭𝐡𝐞𝐦 𝐰𝐢𝐭𝐡 𝐡𝐢𝐠𝐡𝐞𝐫 𝐭𝐚𝐱𝐞𝐬 𝐫𝐞𝐬𝐮𝐥𝐭𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 𝐝𝐢𝐦𝐢𝐧𝐢𝐬𝐡𝐢𝐧𝐠 𝐍𝐈𝐑𝐂 𝐟𝐨𝐫 𝐭𝐡𝐞𝐦.

𝐖𝐡𝐨 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐒𝐢𝐧𝐠𝐚𝐩𝐨𝐫𝐞𝐚𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬? They could be YOU in your twilight years. They are your children, children's children, family. relatives, friends.

𝐖𝐇𝐄𝐑𝐄 𝐀𝐑𝐄 𝐖𝐄 𝐓𝐎𝐃𝐀𝐘?

1. Today, 𝐡𝐚𝐥𝐟 of us working Singaporeans 𝐝𝐨 𝐧𝐨𝐭 𝐩𝐚𝐲 𝐚𝐧𝐲 𝐢𝐧𝐜𝐨𝐦𝐞 𝐭𝐚𝐱.

2. 80% of us who do pay income tax pays 𝐚𝐧 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐫𝐚𝐭𝐞 𝐨𝐟 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝟒%.

3. With the Enhanced GST Voucher Scheme, the 𝐛𝐨𝐭𝐭𝐨𝐦 𝟑𝟎% 𝐨𝐟 𝐡𝐨𝐮𝐬𝐞𝐡𝐨𝐥𝐝𝐬 𝐰𝐢𝐥𝐥 𝐩𝐚𝐲 𝐚𝐧 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐆𝐒𝐓 𝐨𝐟 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝟑%.

4. The 𝐞𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐀𝐬𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐏𝐚𝐜𝐤𝐚𝐠𝐞 𝐰𝐢𝐥𝐥 𝐝𝐞𝐥𝐚𝐲 𝐭𝐡𝐞 𝐆𝐒𝐓 𝐡𝐢𝐤𝐞 𝐛𝐲 𝟓 𝐲𝐞𝐚𝐫𝐬 for lower and middle income households.

You will not find another country in the world

- where their citizens pay low-to-no income tax, single digit GST,

- and enjoy the best in the world in terms of housing, education, healthcare, public transport

- a country where the Government puts in effort to provide intensive, holistic help to those from the neediest and vulnerable families (KidsSTART, UPLIFT etc)

- a country where the Government expends great effort to help prison inmates (I know because a friend of mine works in prison school) achieve their potential.

The future will come. It takes political courage to do right not just by the present generation of Singaporeans, but by the future generations as well.

𝐀 𝐜𝐨𝐮𝐧𝐭𝐫𝐲 𝐭𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐧𝐨𝐭 𝐭𝐚𝐤𝐞 𝐜𝐚𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐡𝐚𝐬 𝐧𝐨 𝐟𝐮𝐭𝐮𝐫𝐞. 

A WP Government will remove the second key to raid reserves to fund their populist policies

If Singaporeans buy into the proposal that we can sell land for money to spend on daily needs, then we are not only stupid, we are the laughing stock of the world.

Singapore is so small, we don't even have enough land for all our needs. We have to reclaim land.

Saudi Arabia not only has oil. Saudi Arabia also has land (2.15 million sq km).

Singapore is just 716 sq km of which 141 sq km is reclaimed land.

For all its vast resources, Saudi Arabia has had to raise value-added tax from 5% to 15% in less than 2 years! 10 percentage points in less than 2 years.

The last time Singapore raised the GST rate was in 2007.

15 years later, Singapore wants to raise GST by 2 percentage points.

The proposal by WP to sell land for money to spend on daily needs is a desperate populist measure.

WP's proposals: sell land for money, borrow for money, no need for you to pay more taxes. Free education, free transport, ...

What is stopping WP from going all the way of populism to promise you free things is the second key to the reserves, the blocking power of the President.

A WP-led government will remove the blocking power of the President.

Yes, they will.

Pritam said in Parliament that the President must be restored to its ceremonial role with no blocking power so that there will be no confrontation with a newly-elected (WP) Government. 

The Significant Infrastructure Government Loan Bill - also known as SINGA

The Significant Infrastructure Government Loan Bill - also known as SINGA - was passed in Parliament yesterday.

The Bill allows the Government to borrow for huge infrastructure investments while spreading repayment over generations of Singaporeans. This approach is fair as such infrastructure investments are enjoyed by generations of Singaporeans, so each pay for their share of the investments.

With Singapore's triple-A credit rating, Singapore is able to borrow at low interest rates while reinvesting our reserves for higher returns.

The triple-A credit rating is the result of fiscal prudence and sound fundamentals.

However, we have an opposition that wants to erode this sound financial position.

WP for example, wants more of NIRC (currently 50%) to be made available for recurrent spending. This means less to reinvest and therefore less returns to spend in the future.

Not only that, they want land proceeds to be used directly for spending. Selling assets to spend is the fastest way to deplete reserves.

And then there is PSP Leong Mun Wai which thinks we have huge reserves and there is thus no need for the government to borrow for large infrastructure investments.

Such calls for in no time, erode our fiscal position and therefore, fiscal rating as well.

Our fiscal rating is hard earned. There are very few countries left in the world that have a triple-A credit rating. It is a rating not to be taken for granted.

We hope that the opposition can be more responsible not only to present Singaporeans but also to the young and to future generations of Singaporeans.

PSP Leong Mun Wai: spend every cent of NIRC returns

 

Mr Leong represents PSP's position. It is shocking to hear him suggest using 100% of NIRC.

Spend every cent of investment returns. Can someone help him to understand the consequences?