Wednesday, March 01, 2006

MPs fear expectations of more goodies from future Budgets

Debate on the Budget began in Parliament on Monday.

Overall, MPs who spoke welcomed the Budget for ensuring Singapore's economic viability while making sure no one is left behind.

They said the Budget's Progress Package, with Growth Dividends and the Workfare Bonus, has covered all bases with more for the elderly and the poor.

But many felt that the Budget should not be just about the goodies.

They feared that this year's generous Progress Package for all Singaporeans could breed a crutch mentality and create expectations for more goodies in future Budgets.

"This is a Budget where the heart and the head beat with wonderful symmetry," said Dr Amy Khor, MP for Hong Kah GRC and mayor for South-West Community Development Council (CDC).

But she added: "Already, we are seeing an entitlement creep in some residents who unabashedly turn up repeatedly either at MPS (meet-the-people sessions) or CDCs to demand for financial assistance and supermarket vouchers even when they are being helped with a package of assistance."

Dr Wang Kai Yuen, MP for Bukit Timah, said: "We have given up any attempt to camouflage the Government handout as subsidy or welfare payment or negative income tax. We now just give adults cash.

"I believe from this year onward, every future Government would be tempted to reap political dividends through a people-oriented Progress Package at the end of its term, thus starting a new cyclical trend known as the 'Election Year Budget'."

Others were concerned that the money would not be well spent.

Halimah Yacob, MP for Jurong GRC, said: "I am a bit concerned about the different ways in which some Singaporeans intend to spend their Growth Dividends. There's even one person who was quoted as saying he intends to buy 4D.

"But it is better to save this money to use during a rainy day as jobs are now more volatile. It's uncertain and it's possible for us to leave our jobs anytime."

Some MPs also felt that the sandwich class - those who are cash poor but asset rich - were left out of this year's Budget.

Others voiced the need for more clarity so Singaporeans will not be confused about what they'll be getting in the Progress Package.

One MP also called for schools to tap on the Opportunity Fund to educate students about Singapore's history.

Indranee Rajah, MP for Tanjong Pagar GRC, said: "I would like schools to go beyond the classroom and lay the foundation for learning. I would urge the schools to provide programmes to encourage students to know of our political, economic history.

"It's noteworthy that Mr Rajaratnam, even in his passing, taught us this fact.

"It's true. Whenever we listen to the Budget, everybody wants to know when we can get to the goodies section, what handouts they get, nothing wrong with that so long as we as Singaporeans understand we can only hand out goodies so long as there are surpluses to hand out goodies with. Not everyone understands that." - CNA/ir

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