Reflections on the 2007 Budget

By: robertteh

The 2007 Budget just announced in parliament today by the second minister for Finance Mr. Tharmashamuratnam is the same budget in substance as all the previous years' budget.

It presented only half truths and untruths in places. The following are some areas of inaccuracies which cause problems to our citizens which if not properly addressed will pose greater problems to our costs of living and economic competitiveness:-

1. The budget is essentially Income and Expenditure in format. Based on such format, many relevant informations are hidden and citizens cannot see the real picture or fair presentation of our state of revenue, and expenditure and how to better manage our future economic competitiveness because of the lack of relevant information.
   
   Under such a format, the government is able to show that what it is collecting is not sufficient to cover expenditure. So it can use such creative accounting method to increase taxes, give a big of discount like the HDB is doing and at the end claim it is giving people subsidy. What a farce.
   
   Government should know full well it is hoarding citizens monies by such methods which is more than meet the eye. Despite all the beautiful statement, and giving of all the discounts and rebates the government is over-taxing in indirect and other taxes through the HDB, LTA etc and is giving some discounts to appease the victims so as to sustain the unfair and oppressive tax-and-recover system.
   
   
2. What is not presented in parliament is the double-charging on assets and lands already paid by citizens by HDB, JTC, LTA, SP and all the ministries through other methods not revealed e.g. HDB double-charging on lands owned and paid for by the citizens and LTA continuing to charge on vehicle excise duty, petrol duty, road taxes when COE and ERP have been introduced as the fairest method to price road usage.
   
   
3. Ministries and statutory boards providing basic necessities have been corporatized into Pte Ltd GLCs in order to enable them to charge higher monopoly fees which continuously drive up costs of living.
   
   
4. Off-budget surpluses sucked by HDB, JTC, LTA, SP, PSA, are hurting people and driving up our costs of living and cost of doing business and are killing our entrepreneurship and driving away our investors.
   
   Such off-budget surpluses amount to more than one billion per year of which the finance minister remains silent. On top of these double-charging the budgeted expenditures are being liberally spent by ministries like LTA on extravagant signboards and signposts, expensive buildings, expensive bus stops and even drain repairs which are unnecessary. Why can't the Finance Minister allow unspent budgets to be banked into the endowment funds mentioned to be placed on hold for future use or lower the costs of living.
   Even if the government does not raise GST, it has made more than enough monies from all these GLCs indirect taxing and cost recovery to pay all the rebates and concessions in taxes.
   
   So I am disappointed with the lack of presentation of such off-budget surpluses hidden among all our GLCs which continue to drive up our costs of living and killing our own economic competitiveness.