Singapore is in an unusual position
According to the Straits Times news report “As spending needs rise, S’pore can supplement funds: Minister” (Feb 27, front page headlines local news) – “Singapore is in the unusual position of being able to tap more sources of revenue to fund its increased spending needs …
Many other countries around the world actually need additional revenue sources to help pay for programmes that benefit citizens, but not that many have the courage to raise taxes
But we think that it is the responsible thing to do.”
Lowest government spending
According to the Economist magazine (Sep 27) – Singapore seems to have the lowest government spending in the world amongst developed and developing countries – “(in) Denmark, government spending runs to nearly 60% of GDP. More diverse America allocates just 39% of GDP to government, in polyglot Singapore the figure is just 14%”.
Only 3.5% of GDP social spending?
According to the article “Asia spending too little on poor: Report” (Straits Times, Jul 12, 2013) – “Singapore spent 3.5 per cent of GDP on social protection, which includes the Central Providend Fund (CPF)
This was far below the 19.2 per cent by Japan and 8 per cent spent by South Korea, the only other high-income countries in the study.”
If exclude CPF, even lower spending?
“As CPF is not spending by the Government, but essentially the people’s own savings – Singapore’s social spending may actually be even much lower than that cited in the subject report” (“Singapore spends the least (relatively) on social spending?“, Jul 12, 2013).
In this connection, the estimated cash Budget surplus under IMF fiscal reporting guidelines is more than $24 billion for FY2014.
“Responsible thing to do”?
So, what do you think of the remarks “but we think that it is the responsible thing to do”?
Win battles lose war
TRS Contributor