Leong Mun Wai on reviewing public finances to help Singaporeans
The Government has tied up a lot of financial resources from the national Budget and in the reserves to the detriment of the financial well-being of Singaporeans today, said NCMP Leong Mun Wai in Parliament on Wednesday (Feb 7). Moving a motion on the issue, he said the resources should be deployed more fairly for present-day Singaporeans while continuing to save for future generations. Mr Leong said the Progress Singapore Party (PSP) had two proposals. First - consolidate surplus Budget or Net Investment Returns Contribution (NIRC) from the country’s financial reserves in an omnibus Budget surplus fund for future spending, instead of in various endowment and trust funds. Long-term expenditure needs should be funded each year directly out of this omnibus fund, and investment returns on the assets in the fund be retained there as well. Mr Leong said this will ensure that surplus Budget or NIRC resources will always be used promptly for Singaporeans’ immediate spending needs and unused capital will remain in the omnibus fund rather than being transferred back to the reserves. Parliament can also have better oversight of the fund and be in a better position to support tax increases if required. Second - Mr Leong reiterated PSP’s call to waive the land cost for public housing owned by Singaporeans for the purpose of occupancy under its Affordable Homes Scheme. This would eliminate the HDB deficit, release substantial resources back into the Budget and reduce the tax burden on Singaporeans, especially the middle class. PSP’s proposals do not reduce the past reserves, he said, though they might marginally slow down the future rate of accumulation - and Singapore has the fiscal space to do this as PSP estimates that the financial reserves stand at about S$1.2 trillion and growing every year. Mr Leong added that there was no need to keep the size of the reserves a secret when this can be derived from publicly available information; therefore, the Government should release official figures so as to facilitate proper discussion on taxation and spending policies.
The Government has tied up a lot of financial resources from the national Budget and in the reserves to the detriment of the financial well-being of Singaporeans today, said NCMP Leong Mun Wai in Parliament on Wednesday (Feb 7). Moving a motion on the issue, he said the resources should be deployed more fairly for present-day Singaporeans while continuing to save for future generations. Mr Leong said the Progress Singapore Party (PSP) had two proposals. First - consolidate surplus Budget or Net Investment Returns Contribution (NIRC) from the country’s financial reserves in an omnibus Budget surplus fund for future spending, instead of in various endowment and trust funds. Long-term expenditure needs should be funded each year directly out of this omnibus fund, and investment returns on the assets in the fund be retained there as well. Mr Leong said this will ensure that surplus Budget or NIRC resources will always be used promptly for Singaporeans’ immediate spending needs and unused capital will remain in the omnibus fund rather than being transferred back to the reserves. Parliament can also have better oversight of the fund and be in a better position to support tax increases if required. Second - Mr Leong reiterated PSP’s call to waive the land cost for public housing owned by Singaporeans for the purpose of occupancy under its Affordable Homes Scheme. This would eliminate the HDB deficit, release substantial resources back into the Budget and reduce the tax burden on Singaporeans, especially the middle class. PSP’s proposals do not reduce the past reserves, he said, though they might marginally slow down the future rate of accumulation - and Singapore has the fiscal space to do this as PSP estimates that the financial reserves stand at about S$1.2 trillion and growing every year. Mr Leong added that there was no need to keep the size of the reserves a secret when this can be derived from publicly available information; therefore, the Government should release official figures so as to facilitate proper discussion on taxation and spending policies.
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