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SINGAPORE: Second Minister for Finance Tharman Shanmugaratnam said there is strong support for the three key thrusts in this year's Budget.
These key points are cutting corporate taxes and building capabilities for the future, strengthening the social security system through Workfare and CPF changes, and raising the GST to build a strong and sustainable revenue structure.
Summing up the three-day debate in Parliament on the government's financial policy for 2007/08, Mr Tharman categorised the issues raised by MPs under three questions.
One, is why there is a need to strengthen revenues, especially the need to raise the GST.
Second, is whether the Budget positions Singapore well for future growth.
And third, if the Budget is fair to all Singaporeans.
Mr Tharman told the House that Singapore faces declining revenues, and that operating revenues have not grown as fast as the country's GDP.
In addition, its expenditures have to be built up to stay competitive and prepare well for the future.
That is why Singapore is cutting corporate taxes, which Mr Tharman said is the first major move in this Budget to stay competitive.
This will cost the government S$800 million a year.
The government will also enhance continuous education and training for Singaporeans to stay relevant.
Healthcare expenditure too is being increased.
Singapore, Mr Tharman said, also needs to make major investments to enhance its capabilities.
These require additional revenues - by raising the GST and drawing on the net investment income.
- CNA/so
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