Singapore cannot rely on ‘sentiment-driven’ collections to meet rising expenditure needs: Lawrence Wong

Singapore cannot rely on 'sentiment-driven' collections to meet rising expenditure needs: Lawrence Wong

“The real estate market has recovered at a much faster rate than many marketplace observers had expected. But just as a bullish property market can provide upsides, there may also be downsides in the muted market, as past experience has shown, ” said Mr Wong.

“We have used the higher taxes revenue in FY2021 to support new investing needs, including the improvements to the Progressive Income Credit scheme, along with provide short term comfort for businesses plus families. These include the COVID-19 support packages during periods of heightened restrictions a year ago, and measures to help Singaporeans with cost of living support this year. ”

HIGHER HEALTH CARE EXPENDITURES

In the reply, Mr Wong also responded to something on whether the GST hike could be deferred on account of rising pumpiing.

“The Federal government shares Singaporeans’ problems over inflation. Over the past decade, Singaporean employees have experienced real income growth. Wages have got exceeded inflation, ” he said.

“We do not have true wage growth numbers for 2022 however, as the data is only going to be available later this season. But we know that inflation has gone up in this particular year and that is precisely why the Government will continue to keep provide support designed for Singaporeans to reduce the impact of higher prices. ”

Besides measures announced in this year’s Budget, Mr Wong noted that the Government introduced a S$1. 5 billion support package within June with more support given to the lower- income and vulnerable groups.