GST increases – necessary or not?

In case you have missed this year’s budget speech, the biggest takeaway for Singaporeans would probably be that of how GST will be increased by 2% – from 7% GST to 9% GST.  

Because we need money to pay for our current and future expenditure.

Seriously Pay And Pay – Y U NO WANT TO USE RESERVES?

Okay, Minister Heng put in a lot of cheemology in his speech to explain why

We will try to put this in simple Engrish for you.

Essentially, YES the Government has been using some parts of the reserves already.

Minister Heng said that the Government has been able to do this because our forefathers have put aside savings when our economy was doing very well.

But then, because Singaporeans are ageing as a population, and the economy is maturing (i.e. slowing down and therefore may potentially have lesser money for our reserves) – so we must use our reserves wisely.

Otherwise, when we use up our reserves, or when any crisis befalls Singapore – at least we have our reserves in pace to soften our fall.

And finally — so our future generations can be padded as well.

You know one la, this is the Kiasu way, also what Heng Swee Keat was referring to — the Singapore way.

Use an example that we can understand, if you know that you have $100 left in your account for the month, you will try to (i) save/keep it where you can, (ii) not spend all your money at one go, (iii) find potential ways to make your $100 into $1000. In the situation where your parents need to go hospital, at least there is some money to tide you over the period. If money all use up, then you GG la.

Okay so raise GST, money go where?

  1. Healthcare lor.

Singaporeans – get old, get sick. And the pool of Singaporeans getting older will get bigger once we hit our baby boomers.

Then the Government also kaypoh lah, want to take care of people.

Like that, of course need to have more money for healthcare subsidies and healthcare facilities (e.g. polyclinics, nursing homes, community hospitals) when the pool of elderly Singaporeans grow.

So you start off with #waragainstdiabetes first — you do your part ok.

  1. Infrastructure

Simply put – Simi Gov also want to build and repair la.

You want more HDBs – they build.

You want more trains networks – they build.

Train spoil – they repair.

Gov also ambitious AF – want to invest and build KL-Singapore High Speed Rail and Changi Airport T5.

Overtime, these projects can potentially bring in more visitors – i.e. can help the economy do better, i.e. more money for you and me.

 

But before we start getting ahead of ourselves, these will need money lah – if only money will drop from the skies.

  1. Security

No more needs to be said. Put more money there, they enhance Singapore’s capabilities, they keep Singapore safe from terrorism. Fullstop.

     4. Education

Minister Heng Swee Keat said more money is spent on each child to give them a good headstart, starting from pre-school, and continue to invest in lifelong learning.

If only all these si ginnas will start studying harder.

Angpao for you and me

We saved the best for the last.

Minister Heng said that Singapore’s economy did better than usual in FY2017 – primarily because of MAS’ super performance last year.

For this budget surplus, he will be putting majority of it away to finance new MRT lines + healthcare subsidies. #orelsewepaymoretax

The remaining small part of the budget surplus, Minister Heng announced that he will be sharing it with all Singaporeans. So we will be getting a small angpao of either $100, $200, or $300 from the Government.

If you are below 21 this year, then sorry you go ask your parents for money.

Gongxigongxi — guess the Minister was really feeling the vibes for CNY this year.