DIGGING into past reserves to pay for part of this year's Budget
is not tantamount to breaking the piggy bank, said Senior Minister
Goh Chok Tong.
'To break the piggy bank is to allow all notes and coins to spill
out, with no controls over how much is spent,' he said.
'We are not doing that. Our reserves must continue to be
protected.'
He made this clear on Sunday when he recounted how he swiftly
set right a former ambassador to Singapore who had teased him that
the country was 'finally breaking the piggy bank'.
'I promptly corrected him,' Mr Goh recalled at a Chinese New
Year lunch at his Marine Parade constituency.
His assurance about protecting the reserves comes amid some
concerns raised by Singaporeans over the historic move to draw on
past reserves to fund aggressive pain relief measures in this
year's $20.5 billion Budget.
The Government had sought the President who had given his
in-principle approval to draw $4.9 billion from past reserves.
It will help fund two temporary measures - the $4.5 billion Jobs
Credit Scheme to subsidise employers' wage bills to encourage them
to keep workers on the payroll, and the $5.8 billion Special
Risk-Sharing Initiative to help companies get access to credit.
Mr Goh took pains to point out that the reserves should be
tapped only as a last resort and when there are compelling
reasons.
'We must continue to exercise great discipline and not dip into
our reserves at the first sign of trouble,' he said.
Hence, he is in favour of putting up three 'No' signs on the use
of reserves even as Singapore is drawing on it during this
recession.
One, 'No' to supporting social assistance programmes. The
Government, as a general principle, must continue to fund such
programmes out of revenues raised in the current term of
government.
Two, 'No' to funding permanent programmes such as ComCare and
Workfare Income Supplement. These programmes, 'no matter how
meritorious', should be funded by current revenues and
reserves.
Three, 'No' to drawing reserves except under 'dire
circumstances'. It is when 'extraordinary measures are required to
ward off catastrophe or prevent irreparable damage to the economy',
he said.
[url]http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_332986.html[/url]
smlj wor.
The other time MM Lee still made a statement "If this isn't
considered a crisis, I don't know what is"
:roll: