BUDGET Firepower
A number of MPs on both sides of the aisle also spoke about finances marksmanship, which refers to the comparability of budget projections with real macroeconomic results.  ,
Ms. Lim of the Workers ‘ Party claimed that the government had projected a glut of S$ 78 billion for the 2024 fiscal year, but that revised number revealed an S$ 8 billion boost in overall operating profits.  ,
She asked:” May an updated measure have been provided? Why was this discrepancy not identified earlier” ? ,
Echoing points made on Wednesday by the Leader of the Opposition, she added that the higher-than-expected Certificate of Entitlement ( COE ) and GST collections reflect financial pressures, which are “outcomes of domestic policies”.  ,
Mr Singh had questioned the necessity of raising the Goods and Services Tax in 2023 and 2024, given the country’s “exceedingly good” fiscal place.
According to Leong Mun Wai, a non-constituency member of the Progress Singapore Party, the PAP authorities has “always asserted that there is limited fiscal headroom.”
” But if surpluses are generally bigger than what is estimated year after year, it really raises the question of why the government decided to raise the GST in 2023 and 2024 in the face of great global prices,” he said.  ,
PAP MPs defended the government’s decision to allocate funds surplus.  ,
According to Mr. Xie Yao Quan ( PAP-Jurong ), these surpluses should not be viewed as potentially fueling cynicism among Singaporeans because” the government has been collecting more taxes and money than the nation needs.”  ,
” I think Singaporeans is, instead, draw trust – that these surpluses represent this PAP president’s consistency and , the , did to preserve fiscal prudence, over its whole term of government … , and well into potential terms of government, if the PAP were to remain receiving the mandate to form the government of Singapore”, he said.
He added that five years ago during the COVID-19 crisis, an “unprecedented gap” of more than S$ 50 billion was incurred.
Eventually, the economic times 2021, 2022 and 2023 ended “more or less healthy”, he said.  ,
He claimed that the surplus in this and the previous fiscal year “really only allows the state to end its five-year phrase of government more or less healthy” excluding the drawdown from previous reserves.  ,
” And this is , also , what subsequent PAP governments have committed to do”.
Agreeing, Mr Derrick Goh ( PAP-Nee Soon ) said that the GST increase “remains necessary”.  ,
He said,” To criticize the GST increase because of recent fiscal deficits misses this important point and just takes a brief look at the overall GST scheme.”  ,
The governmental deficit, whether it is anticipated or sudden, reflects a prudent and conservative perspective, which I believe all prudent economic experts with a high level of management duty would adopt. It is the fundamental principle of never spending more than one has.