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February 28, 2008 Thursday
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Feb 28, 2008
Govt's prudence welcomed
DR LIM Wee Kiak (Sembawang GRC) capped 2-1/2 days of speeches by 41 MPs on the Budget by speaking up for the Government's prudence and giving his firm support to last year's goods and services tax (GST) hike.

The final speaker, Dr Lim noted several MPs' concerns that the Government had been off the mark in its Budget estimates for last year, projecting a $0.7 billion deficit that turned out to be a $6.45 billion surplus.

But unlike them, he was 'happy that the Government is in a strong fiscal position'.

'With the looming uncertainties, I welcome prudence and keeping some surpluses for additional contingencies if the need arises,' he said.

He also backed the hike in the GST from 5 to 7 per cent last July, and urged Singaporeans not to forget the reasons for the change.

'The aim is to revamp our tax structure to better equip the Government with additional resources in the future, to tackle the widening income gap and provide resources for wealth re-distribution through schemes such as Workfare Income Supplement,' he said.

He also pointed out that even without the GST hike, food and oil prices would still have gone up because Singapore is not immune to global inflationary pressures.

Two other MPs spoke on the Budget yesterday: Mr Zaqy Mohamad (Hong Kah GRC) and Madam Ho Geok Choo (West Coast GRC).

Mr Zaqy said that listening to fellow MPs' impassioned speeches calling on the Government to do more to curb rising costs and help the old, the poor and the disabled, made him wonder if the community has lost its sense of responsibility to care for its own.

'What happened to social responsibility? Have we lost our social capital that the disadvantaged...are solely the Government's responsibility?' he asked.

Madam Ho suggested that the Government issue a special transport pass to help low-wage workers. Such a pass would enable these workers to accept jobs at places far from where they lived, she said.

LYDIA LIM

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