HSK remembers presenting the budget fondly.
5 hrs ·
In Singapore, Budget is never just about allocating resources for the coming year, but a strategic roadmap for the future. Budget 2022 is no different.
Budget 2022 charts the way forward for Singapore as we look to a post-pandemic world. Together we will need to invest in new capabilities, transform our economy and create better jobs for our people. We will need to make the green transition as the world grapples with climate change. We will need to renew our social compact by uplifting lower-wage workers and disadvantaged families, and enabling everyone to realise their potential. These moves will be further elaborated on during the Committee of Supply.
These long-term moves will improve the lives of everyone in years to come, but require substantive and sustained investments. And we are walking an increasing tightrope as our fiscal position tightens.
Ministries are already doing what they can to stretch their expenditure dollars. Investment income from our Past Reserves, at more than 20% of total revenue, is already our largest source of revenue. If not for Past Reserves, we would need to more than double GST or personal income tax to balance the Budget.
To create a better, greener, and more inclusive future, we will need to raise revenue to fund these plans. Tax increases are never popular, and there is never a good time. But we can raise revenue in a way that is fair, progressive, and gradual. This will then put us on a robust fiscal footing to build a better shared future for all Singaporeans.
This is what Minister
Lawrence Wong set out to do in Budget 2022. Lawrence outlined a set of revenue measures at Parliament today – including higher carbon tax, personal income tax, property tax, tax on luxury cars, and GST. The GST increase will go towards taking care of our seniors. Even then, this will only cover part of the additional healthcare expenditure.
I raised the need for a GST increase in Parliament back in 2018. We delayed the GST increase due to the pandemic. But the needs continue to grow and are even more pressing now. We fully appreciate Singaporeans’ concerns about raising GST at this time, when prices are rising. Lawrence therefore announced today that the GST increase will only be implemented in 2023, with the increase staggered over two years.
To cushion the impact on all Singaporeans, we had earlier set aside a $6 billion Assurance Package. Budget 2022 will provide an additional top-up of $640 million to the Assurance Package. The permanent GST voucher scheme will also be enhanced, which will neutralise the GST increase for lower income households.
Ultimately, everyone needs to chip in to build our collective future, with those with more means contributing more taxes. I hope my fellow Singaporeans will come to appreciate why these moves are not only necessary, but critical to our continued progress as a people and as a nation.
(Photo by Jeremy Long/ CNA)
