News analysis

MOF’s medium-term projections indicate need to avoid longer-term fiscal time bomb

MOF’s latest paper is the starkest proof that additional revenue sources such as the GST hike are a must-have, not just good to have

MOF's latest paper is the first time detailed numbers have been pulled together in one place on how Budget 2022’s revenue moves will ensure a more balanced budget. ST PHOTO: BENJAMIN SEETOR
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SINGAPORE - The basic message of the Finance Ministry’s occasional paper, released on Wednesday, is not new.

The message is one which has been repeated across Parliament debates and also during Budget 2022, when Deputy Prime Minister and Finance Minister Lawrence Wong noted that government expenditure is projected to increase significantly in the coming years, especially in healthcare, necessitating enhancements to Singapore’s tax system to raise more revenue.

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