Can an increase in GST help the poor?
The Government said increasing GST is a strategy to help the
poor
Our Prime Minister, Lee Hsien Loong, had said the increase in its
sales tax from 5 per cent to 7 per cent is to help finance more
government spending for the poor while suggesting corporate tax
rates would be cut to enhance the country's competitiveness in
attracting foreign investment.
Is the increase in GST helping the poor or to increase spending on
needless expenditure on lavish furnishing to government
offices?
A letter in the Straits Times forum "Needless expenditure on
English courses appeared earlier in Sep 07 had envisaged the
government to think twice before spending the taxpayers money
unnecessarily when he came across a Gebiz tender, in which a
government school seeking private-sector companies to conduct
English courses for its PRC scholars, paying at least $35,000 for
300 hours of instruction.
I had just visited a government office last week and saw that the
staff is sitting on Herman Millers Aeron chair. I was appalled at
the extravagance and wonder if the government is adding another 8th
and 9th wonders to Mr Tan Soo Khoons 7 wonders list.
In 2003, Mr Tan Soo Khoon, Member of Parliament for East Coast GRC,
when he was asked for his views on the Government's current
save-money drive, he had likened some new government offices to
five-star hotels and wondered aloud whether the ministries and
statutory boards housed within, were competing to see 'which can be
better than the Four Seasons Hotel'
Mr Tan commented that some government agencies could do without
frills and extravagance, and that this would help contain public
spending
He had raised the point during the Budget debate, when asking if
the Government needed to raise the Goods and Services Tax to
prevent the Budget falling into deficit.
When it comes to government buildings, he said there should be two
guiding principles: They must be functional and comfortable.
'We should not go overboard to make them lavish or luxurious,' he
said.
The so-called 'seven wonders' have been or are being built.
'What's done is done,' said Mr Tan. What is more important, he
said, is that the awareness has been created and the Government is
more conscious of this issue.
'They have issued a directive to be economical about things.
'I think things will change.'
Is it true that things had changed? Is it true that the government
is looking at ways to contain public spending?
On one hand, the government is telling Singaporeans the need to
increase the GST is to help the poor but on the other hand, we see
government spending lavishly on their office furnishing.
I think the agencies in question need to sit down to look into this
seriously. What are the priorities? Is the luxury of installing a
golden tap in a CEO offices toilet to reflect his status the top
priority of these officers who are the decision makers on how the
public money should be spent on?
What an irony to see these top officers sitting in their lavishly
furnished offices making measures to control Government
expenditures and reduce wastage of resources and funds.
Opposition groups say Singapore can afford to spend more on its
poor since the government's financial reserves are among the
largest in the world when measured against gross domestic
product.
So is the recent increase in the GST to 7% necessary? Is this
increase use for helping the poor or to support the lavish life
style of the officers in question?
I hereby seek all the ministries and statutory boards to spend the
public money prudently. I believe the staff does not need to sit on
an expensive Herman Millers chair in order to work well. I cant
help but conclude that any extravagant spending is a selfish act to
reflect their status as the expense of the public funds.