Sitoh Yih Pin on reviewing public finances to help Singaporeans
Members of the opposition have made a “very wrong assumption” in calling for a review of public finances to better balance the needs of present and future generations of Singaporeans, said MP Sitoh Yih Pin in Parliament on Wednesday (Feb 7). He said they assume in talking about the Net Investment Returns Contribution (NIRC) from the reserves that there will always be a return on capital. He also said he feared that the years of large budgetary surpluses may be over for Singapore, simply because of the reality of an ageing population. This is because working-age adults generally consume more and contribute more to Government revenue, while the elderly pay little or no taxes but consume more Government revenue. That is why the Government has to raise GST to widen the tax base and balance the books, he said. Mr Sitoh also described NIRC as a form of “passive income” which - at 20 per cent of Government revenue in Budget 2023 - was “not small”.
Members of the opposition have made a “very wrong assumption” in calling for a review of public finances to better balance the needs of present and future generations of Singaporeans, said MP Sitoh Yih Pin in Parliament on Wednesday (Feb 7). He said they assume in talking about the Net Investment Returns Contribution (NIRC) from the reserves that there will always be a return on capital. He also said he feared that the years of large budgetary surpluses may be over for Singapore, simply because of the reality of an ageing population. This is because working-age adults generally consume more and contribute more to Government revenue, while the elderly pay little or no taxes but consume more Government revenue. That is why the Government has to raise GST to widen the tax base and balance the books, he said. Mr Sitoh also described NIRC as a form of “passive income” which - at 20 per cent of Government revenue in Budget 2023 - was “not small”.
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