Singapore must never spend more than it earns and burden future generations: PM Lee

Singapore must never fall into the same hole as some countries which spend more than they can earn, said Prime Minister Lee Hsien Loong on Wednesday night in a Facebook post.

He warned that doing so would drag down the economy and burden future generations. Instead, Singapore should keep its economy vibrant and live within its means.

It is only through doing so that the Government will be able to provide help and assurance to all and keep Singapore a nation of opportunities, he said.

Mr Lee noted that MPs from both sides of the House had supported this year's Budget, especially the Pioneer Generation Package.

Many had shared stories about their own parents or grandparents who belonged to the "special generation", he noted.

They had made some useful suggestions on how to to improve on the package, he said, adding that the ideas would be considered carefully.

He noted, though, that the Government could afford to set aside $8 billion for the package because it had been careful with its finances.

But with spending on health-care and infrastructure going up, and an ageing population, Singapore would have to think about raising revenues further down the road, he added.

"We are alright for the next few years. Beyond that, we must think about raising more revenues."