Parliament has to choose between what's popular and what's right as spending needs grow: Indranee

Singapore may face difficult choices ahead as its spending needs grow despite a tight fiscal situation. PHOTO: ST FILE

SINGAPORE - Parliament on Monday (March 8) approved the Government's $107 billion spending plans for the coming financial year, following nine days of debate on the national Budget where hot-button issues featured prominently on the agenda.

These included sustainability, industry transformation, job security and mental health.

Capping the debate, Leader of the House Indranee Rajah reminded MPs that Singapore may face difficult choices ahead as its spending needs grow despite a tight fiscal situation.

While the House was agreed on Singapore's fiscal approach for this year's Budget, she said, it will likely have to debate the impending goods and services (GST) tax hike again - given what opposition MPs have said on the topic.

"I wish only to leave Members with this thought: If we want to do more for our people, we will have to spend more," added Ms Indranee, who is also Second Minister for Finance and National Development.

"In a tight fiscal situation, this Parliament will not be able to avoid having to make difficult decisions. We will have to choose between what may be popular and what is right. This will require political courage."

She reiterated that the country's recurrent spending should be funded by recurrent revenue, and that the majority of Singapore households will get help to manage the impact of the tax increase.

Deputy Prime Minister Heng Swee Keat had, in his Budget statement, said the GST rate would be raised from 7 per cent to 9 per cent between next year and 2025, but sooner rather than later, although this would be matched by a $6 billion assurance package that would offset the impact of the rate hike for five years for most households.

The debate on the national Budget took a total of 71½ hours this year, with the first three days focusing on the Budget statement. Following this, ministers presented the budgets of their individual ministries, with MPs commenting on these spending plans in their speeches.

A total of 569 "cuts" were filed - the largest number in the past decade, said Speaker of Parliament Tan Chuan-Jin.

Before delivering his traditional round-up speech, he called for stalks of roses to be given to each female MP, mimicking the format typically used by political office-holders when issuing fact sheets to MPs.

"Mr Speaker, may I have your permission to distribute some handouts to our fair Members on occasion of today being International Women's Day?" Mr Tan asked, immediately answering his own question by saying: "Yes, please proceed."

Getting down to business, he then shared his thoughts on this year's debates.

Even as MPs seek to improve, they should keep in mind that much good work has been done by their predecessors, he said. "Let us not just latch on to one or another negative issue and just forget completely all the wonderful work that has been done over the years."

He urged parliamentarians to have "a sense of perspective and context", highlighting recent debate over the Clementi and Kranji forests. Clementi Forest has been earmarked for residential use, although National Development Minister Desmond Lee has said there is no immediate need to develop the site. Separately, a 4.5ha plot of greenery in Kranji was cleared by mistake, which drew ire from members of the nature community.

"Are there genuine concerns with what has happened? For sure," Mr Tan said. "But is our green conversation just about this alone?"

He also called on MPs to conduct parliamentary business "in a way that edifies, and not spiral to the lowest common denominator", and observed that there is a growing passion for things beyond the country's material development.

Finally, Mr Tan urged the House to evolve a "different democracy" that remains strongly united despite their wearing different political colours.

"Politics is such that people like to focus on the negative and the tensions because it makes for better news," he said. "But there is much positivity and alignment that we can also celebrate."

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