Actually, why is the PAP obsessed with having a budget surplus?

[coreofthefruit]

I mean, so many countries in the world, including the largest countries like China, USA, Japan, etc are all not even obsessed with it.

Ivy explained it quite well. They feel you can live as little as possible. 1700/ month for the elderlies.As long as you help them to live their high life and let them be in power, they will give you the bare minimum handouts.

 

[coyote]

Aiya big country where got care about surplus to fight US. You see Russia and middle east. All big countries will do whatever they want.

That's absolutely not true.

The recent case from the American President is the perfect example of how important surplus and reserve are, even to big countries. When Donal Trump launched the massive tariffs against the world, why he suddenly pulled the brake and issued a pause for 90 days? Because some people, hard to pin point who, actually started dumping their huge position in US Treasury sending yield from 4.0 to 4.5%! The largest US Treasury holders are namely Japan, China and some US hedge funds.

Japan finance minister went to US and came back without agrreeing to any of Donald Trump's unreasonable demands. Why? Because Japan is largest US Treasury holder now. If they started dumping US Treasury, Donald Trump will come begging Japan and China to save America from the $6 trillion UST maturing in Jun 2025. So, Japan has the cards, China has the cards and they have not lifted a finger...

Imagine Japan, China and the American hedge funds did not have such huge reserve of UST, we the world already have kneeled before Emperor Trump by now. We had better thank the US hedge funds or Japan that dealt this damaging blow to emperor Trump.

So. Please stop saying huge reserve/surpluses is not needed for any countries regardless big or small.

 

[Eliwood]

Over 5 years, the budget must be balanced....

Covid year is special because of all the money used to just keep the economy alive...The reserves are thick enough to tank it because the reserves are there precisely for such events....


But to force everyone to cover up that hole in the covid year with increased taxes is unethical imho!

Dun think their intention is to force ppl to cover up the drawdown.

It is more of inaccurate forecasting / projection.

The difference in intention is relevant.

 

[charleslee1989]

Dun think their intention is to force ppl to cover up the drawdown.

It is more of inaccurate forecasting / projection.

The difference in intention is relevant.

But can go so wildly off meh for those folks in MOF???

 

[eboy]

Only the paranoid survive

 

[Eliwood]

But can go so wildly off meh for those folks in MOF???

I think it is around 6% off considering SG total budget was 110bn.

What is ur tolerance for wildly off?

 

[charleslee1989]

I think it is around 6% off considering SG total budget was 110bn.

What is ur tolerance for wildly off?

3% to 4% is pretty generous liao lor given by all the bloomberg machines in MOF's office lol...

 

[buyacat]

Perhaps a long list of infrastructure to be build in future and the government have a timeline/plan to accumulate enough funds to partially fund the projects and others to be funded by bonds and loans.
The loans will need to be paid and we'll need some room in the budget to accommodate the increase in expenses.
Materials and expertise also takes time to accumulate and those need continuous funding.

For example the Changi Airport T5 and MRT network expansion were projects that were announced years ago.

 

[dambio]

Must show they're good in managing country's finances n economy. Gdp ftw.

 

[marksnow44]

The Ivory Tower people are so rich like to count $$$, and treated the $$$ from tax also theirs.

 

[hammerhammer]

Trump raise tariff on all countries and the problem solved.

Sure or not. Raise tariffs only those few weaker countries go tolong them. Keep delaying tariff implementation. And best of all highest tariff country bo hiew them LL have to exempt many many products. Have like no have. Ultimate throw face.

 

[Eliwood]

3% to 4% is pretty generous liao lor given by all the bloomberg machines in MOF's office lol...

What does bb got to do with govt budget? How is tax revenue related to market movement?

 

[charleslee1989]

What does bb got to do with govt budget? How is tax revenue related to market movement?

Because bloomberg machines do tailor make their solutions for governments especially for some countries' Ministry of Finance?

https://www.bloomberg.com/professional/solutions/government/#overview

I will be highly surprised that the folks in MOF be just using calculators, pens, emails and gut feel (and Straits Times) to derive an analysis of the raw data of the economy and the impact of external financial influence so that a budget can be hammered out.

 

[LPPLKPKB]

Nothing wrong with it, that’s just being prudent.

 

[Rosanjinz]

Nothing wrong with it, that’s just being prudent.

What about founders memorial?

 

[crandfs]

I think if not obsessed, then surplus will dwindle and disappear

 

[Eliwood]

What about founders memorial?

Why is this an issue actually?

Isnt it normal to spend some money on public goods like parks, museums and structures like memorial.

 

[Coaster]

And you know how much George Soros has or more importantly do you know how much international funds he can gather(not his own money) to launch an attack on Singapore currency? You don't know. He doesn't know what is Singaporean reserve. So, he will not just launch an attack he has no confident in winning. We are safe for the time being, as long as no one stupid government going to reveal our reserves.

And you sais Donald Low knew, how he know something that even the state kept it as secret? How you trusted him and not the government that brought Singapore stability for decades?

We need to be smarter and have the bigger picture and a more global view instead of a myopic view of "release the reserve to make my life better". If that's what opposition is going to push for, I think more Singaporeans will be more repulsive of such irresponsible manifestos. Good luck to them.

Singaporeans in general are smart. That's why I always said, edmwers need not worry, Singaporeans have been voting wisely.

You are also supporting the government position without internal knowledge. You won't know for sure the government is over accumulating surplus at the expense of the well being of Singaporeans. Why not you just offer your views and I offer mine. No need to prove who is right or wrong.

 

[coyote]

You are also supporting the government position without internal knowledge. You won't know for sure the government is over accumulating surplus at the expense of the well being of Singaporeans. Why not you just offer your views and I offer mine. No need to prove who is right or wrong.

I did.

 

[Whimsica]

Budget surplus means planning to spend less than what is expected to be collected.

What is wrong with it?

You think if USA or China or Japan can help themselves they will not want to be in budget surplus situations?

USA is spending lots of money to help world bodies and other countries, many of whom are ungrateful and even laughed at USA's debts incurred partly to fund them and hence Trump is now rapidly cutting down such expenditure.

China's revenue cannot keep pace with huge subsidies to industries and expenditure to stimulate economy

Japan's stagnant economy cannot generate enough to meet increasing public spending on a rapidly ageing population.

And no need to look so far to talk about importance of budget surplus and strong reserves.

For covid, we spent $72 billion across 2 years to keep jobs and provide public healthcare.

That's an average of $20K per citizen.

Not many countries can do that.