So said PM Lee Hsien Loong according to today's ST. Let me quote this very hard to believe claim,
I very much doubt that. Unless we go wild on our spending plans, then of course we will run out of money, and then you will have to raise GST. But if we have prudent budgets and we are careful in our plans, and if we grow the economy, I think we should be in good shape.Excuse me Mr PM, I find it hard to believe that the PAP government would not raise GST like what it did after the 2006 election. This was what the PM said months after the PAP won that election.
"It will give us precious extra resources to implement social programmes like Workfare later on. Our aim is to help the lower income groups and the elderly, not to increase their burdens. When we implement the GST increase, it's not just the GST increase, it's the package which will fully offset the impact of the GST increase and begin to strengthen the social safety nets and tilt the balance in favour of the low income groups - we will not just raise the GST but we will have a comprehensive offset package,The PAP would increase GST to 9% or higher from the the 7% now after the election - it is just a matter of when. To have a moral high ground, they would again cite the reason that the government needs more money to help the less privileged in Singapore and that money has to come from GST. In 2009, GST collected was close to $7 billion and the total tax revenue was more than $36 billion. Hence, GST formed a fat 20% of the overall money pocketed by the government. So, my point? Let's see if the PAP goes back on its words.