Without telling the truth it looks like people have been deceived into approving the increases of GST and other government charges.

It is hoped this lesson will be learned and our 84 MPs in parliament this time will have a more responsible debate on the 2008 budget.

channeled direct to the President’s Reserve

Maybe it is frivolous of me mentioning taxes on cigarettes and liquors but let me say that these two items are the most ‘common consumed’ items throughout the World. They are ‘breaks’ for simple folks, if You understand what I mean. And they are taxed outstanding high.

Well, let’s just say that it is well and good to make and accumulate surpluses, but how long must they be kept unused? One generation had gone by without benefitting from it(surplus), so how many more generations are the surpluses to be reserved? Money is currency, which I surmise serves greatest purpose, when it is used productively and not kept under the pillow.

To the question of “when will it come to a time when its not for political gain”, it is more a matter of how the government is giving the surplus back to the people.

For example, the government could use the surplus to build up a retirement fund, it would have addressed the annuity issue and there will be no need to impose this annuity scheme on the people. However, doing so will not win the government as much political gain because the giving is not individually targeted and the benefit felt immediately as it is now.

It is a matter of addressing the people’s long term needs with the surplus vs the government’s short term need of winning political gain and the government has chosen the later one.

Regards.

1) True enough, the last budget was probably the most inaccurate budget in history, but one would have to look back at the constant upward revision of economic growth forecast throughout the year to gain a better perspective. Our own economy and the global economy wasn’t expected to do as well as it did when the budget was first planned and announced, so will it be good if an overly optimistic budget (at that moment in time) was planned and the economy actually did worse than predicted?

2) To Susu: the 2nd previous handout was for political gain, the previous handout was for political gain, and the current handout is for political gain. So when will it come to a time when its not for political gain? I think we have to be fair to the government for having the willingness to give handouts to Singaporeans, as the budget surplus could well be kept into our reserves following what have been done ever since we gained our independence.

3) However, I would say that the $1.8billion handout is probably too low considering how much our budget surplus was for the previous fiscal year. The distribution curve could be made steeper to enable more help to be rendered to lower income families. Furthermore, the income tax rebate should be scrapped as most of the lower income families do not even earn enough to pay taxes anyway! The money that would have been spent on the income tax rebate could well be transferred to a higher handout for people, or/and a higher top-up into their Medisave accounts, which when done, would benefit the lower-income group more, instead of giving rebates to the super-rich to purchase their Guccis and LVs.

It has been consistently proven that whatever goodies dished out by the govt, more will be taken back from the people through many forms of disguised revenue generating policies.

The 2% GST increase was totally unjustified. It was implemented to generate revenue to cover the civil service pay hike in the name of ‘good governance.’

“If Singaporeans want good governance, then the civil service must be paid very well to discourage wrongdoings?”

Is Singapore so poor of talent that one will only take up civil service jobs lured by the fact that one will be an instant millionaire when promoted to a minister?

We can safely assume that for every one attracted by the pay, there’s another one who genuinely feel and wants to help the people.

Why are these good and equally qualified people not in the govt? Looking at the setup of the govt, one would question whether one could really make a difference in the decision process.

The main problem of our govt is simply a case of profiting in every conceivable ways. Remember, the ministers have a performance bonus to look forward to. Maybe, their bonus will turn out to be much more than their basic pay.

Can you see the true price that Singaporeans have to pay?

The answer lies in the next GE.

Over the years, we have heard these claims in the areas of health care, education, in trying to justify offensively low social assistance rates, and even in avoiding needed infrastructure projects.

……

Hiding revenues also allows the government more freedom in making spending decisions once the unbudgeted funds comes in, because the decisions can be made in cabinet and passed by the legislature after the fact.

This benefit is enhanced by the possibility for high-profile and highly popular spending announcements outside of the formal budget process, and away from the scrutiny and questioning of the opposition.

……after registering another huge unbudgeted surplus, the premier is looking for the most politically expedient way to spend the money. And because it is the middle of summer, the final decision will not be made by the legislature.

This bypassing of the legislature — the venue where government is supposed to be held accountable for how they spend our money — by constantly low-balling revenues, is a huge part of the democratic deficit in this province.

……spending decisions must be made democratically and in the public interest, not behind closed doors and for political gain.

As I see it, in Singapore, citizens are conscripted to defend the country, perpetual schemes to make the people slog for survivals and creating different classes of people in the population are parts of the Strategy of control, divide and rule and for the Rulers to have tight grips over the people.

The Election System, as it stands, with grc, educational, deposits and other requirements, is all out to stifle any opposition. It is not that there are no aspiring politicians for both the Ruling and Opposition Parties, it is, I believe, the fear for the lack and loss of respects when becoming one. The ambition of any would-be politician will wither fast in our political environ.

Yes, make the people beholden to the Ruler using the handouts as the bait and glue; it has proven very effective to get the people addicted. But, how long can such a sheme be maintained? How long should the ‘Golden Goose’(as described by GCT) be fed and fatten to obesity, high cholestrol/blood and other medical conditions and ultimate its’ natural short lifespan? How many ‘Golden Eggs’ will it lay before it ends in maturity?

It is really tough and touchy as a citizen to relate with our leaders who seem to have more foreign than local friends. Can they be casual and caring in relating to their very own people? We certainly hope that they can!

Thanks for pointing out the mistake. No ill-intent was meant and our apologies to everyone. We’ve corrected it. :)

Thanks.

Regards,
Andrew

To me, it means one thing. They are preparing for one LEE to die.

I think the correct word is ‘fraught’, but I’m sure you’re just being facetious here! :)

You are right. The budget forcaste at the time of the GST raise must be the most ridiculously inaccurate forecast ever made.

Pause. Could it have been a deliberately inaccurate forecast? Afterall, there was much resistance to the 2% increase. They had to hardsell it: “to help the poor” and, I’d say, “without the 2% we will be running on deficit of xxx billions”.

Today few people can remember such a forecast. They are right, you know — Singaporeans have very short memories. Except you, thank godness.

I never failed to see ordinary folks getting excited and elated whenever ‘handouts’ are announced.
They are charmed and ingratiated, even though the amounts are insignificant and much of them are negligible, practically useless, such as Medisave top-up, for general purposes.

Unless and until the peasants realised, that their gravitations toward ‘money they don’t have to labour for’, work against their interests in the long run, it is going to be dire. They will be like frogs swimming in a boiling pot not knowing the danger they are in.

Neither can I say the handout givers are any wiser for making their very own people behaving in the aforesaid manner. It is going to be a vicious cycle and the endings for both the people(the takers) and the State(the giver) just can’t be good. It is foreboding.

With all the so called hongbaos that’s been dished out, in all honesty, who do you think get the biggest slice of the cake?

Would not the fat cats with million $$$ salary benefit more than the the poor and middle income Singaporeans.

Example 1: If a minister who earns more than a million per annum, would he not enjoy the maximum rebate of $2,000 from his income tax? Even he lives in a guarded bungalow, would he not still enjoy $100 from Growth Dividends? If he did NS, would he not still get $100. So all in all, he gets $2,200 in benefits?

Example 2: If a fat cat earns millions and he’s in he’s 80’s, would he not still get the maximum Govt top-up Medisave of $450? So he still enjoys $2,000 from his income tax rebate and $100 from Growth Dividens. Wow, he gets $2,750?

More than the whole of what the Tok family receives?

Please correct me if I’m wrong in the above examples.

So Mr Leong, does this hongbao budget (especially tax rebate) help the fat cats more than the men-in-the-street?

I have been reading your financial and economic articles here and I have learned much.

Your expert reply here would help me understand more about the selected truths that’s been dish out so often.

Thank you

Sincerely,
Feed me to the fish.

If the CPF is yours why cant you use it when you need to pay your bills ?

CPF = your own cash ?

Yes ? then why cant we use it….

When we need it ??

Cheers
Simple mind

Sadly, the gov set Medisave as the funding source for major illness. Like many other situation, CPF locks up our money for our “future good” while we are forced to deal with the PRESENT PROBLEMS with cash.

It would make more sense if Medisave continues to open up to cover at least partial payment of such follow up monthly visits like some chronic diseases.

http://www.hpb.gov.sg/chronicdisease/faq.htm

Q3. How can I use Medisave for my outpatient chronic disease treatment?
You can use your Medisave to pay for outpatient treatment for the following four chronic diseases:
• Diabetes
• Hypertension
• Lipid disorders (e.g. high blood cholesterol)
• Stroke

For each bill, you will only need to pay the first $30 of the bill (as the deductible) as well as 15% of the balance of the bill. Medisave can be used to pay for the remaining amount. This is regardless of whether the bill is for a one-off visit or a package (e.g. on a bill of $100, you will pay $30 plus $10.50 (15% of $70) and use Medisave to settle the balance of $59.50.)