During the Budget debate in Parliament, Leader of the Opposition and Workers’ Party chief Pritam Singh criticized the government’s decision to increase the Goods and Services Tax (GST), arguing that it was unnecessary given Singapore’s strong financial position. He also raised concerns about the government’s ability to accurately project its fiscal needs, labeling it as poor fiscal marksmanship.
Singh pointed out that the government had initially projected a fiscal surplus of S$778 million for 2024, but later revised it significantly to S$6.4 billion. The 2025 fiscal surplus is now estimated at S$6.8 billion. He noted a recurring trend where the government predicted budget deficits in past years, only to report large surpluses later. This raised questions about whether the GST hike was truly necessary or if the government had overestimated its financial constraints.
He argued that even if an increase was deemed necessary in 2023, the government had room to delay the second hike in 2024. Instead, it pushed forward with the tax increase despite high inflation, further burdening Singaporeans.
The government’s revenue collection in 2024 exceeded expectations, reaching S$116.6 billion, an increase of S$8 billion or 7.3 percent more than initially estimated. Meanwhile, government spending grew by only 1 percent, or S$1.2 billion, bringing total expenditure to S$112.9 billion. Additional spending was directed toward public housing and defense, while healthcare costs were lower than expected due to reduced COVID-19-related expenditures and lower participation in community care salary enhancement schemes.
Singh questioned why the government continues to collect such large sums of money when its fiscal projections consistently underestimate surpluses. He cautioned that this pattern could lead to public skepticism when future tax hikes are proposed, even if they are justified.
He also reiterated his previous call for an independent parliamentary budget office to enhance fiscal transparency and accountability. He had made this proposal in 2021, but it was rejected, with officials arguing that it would only benefit the opposition. Singh countered that such an institution would also help the government improve its financial forecasting.
Singh also addressed the government’s offset packages meant to cushion the impact of GST, such as CDC vouchers, SG60 credits, and utility rebates. While these measures provide short-term relief, he stressed that they do not solve long-term cost-of-living challenges.
He noted that the cost pressures on Singaporean households remain high, affecting jobs, prices, housing, and opportunities. The temporary nature of GST relief measures means that once they are exhausted, the 9 percent GST will remain in place indefinitely.
He also pointed out the political timing of government handouts, highlighting how CDC vouchers have increased from S$100 in 2021 to S$800 today. He remarked on the decision to extend S$400 climate vouchers to private household dwellers, who generally belong to wealthier segments of the population. Singh found it ironic that government MPs reacted enthusiastically to this announcement despite the ongoing cost-of-living crisis affecting the general population.
Singh’s speech raised concerns about the government’s fiscal policies, questioning whether tax hikes were driven by necessity or miscalculations. He called for greater accountability and transparency in financial planning, warning that public trust could erode if fiscal projections continue to be inconsistent.
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