Budget handouts not GE sweeteners....says PM Lee

BillyBong SG

Budget not a GE sweetener, says PM

It is part of long-term policy to pave the way for Singapore's future growth, he says

By Laurel Teo
March 2, 2006
The Straits Times

TALK may be raging on this year's Budget being an election ploy to win votes, but Prime Minister Lee Hsien Loong yesterday brushed off such notions, saying the Government was not so short-sighted.

'This is not a Budget merely for the purpose of distributing hongbaos to get votes,' he told Parliament, delivering his response as Finance Minister at the end of 2 1/2 days of debate on the Budget.

On the contrary, the package aims to position Singapore for the long term. Hence, it makes long-term commitments 'so that the Government wins not just the next election, but also the mandate to govern over successive terms'.

A total of 47 MPs spoke in the debate. Nearly all applauded the generous giveaways and supported its targeted approach at helping the old and poor. But many - from both the opposition as well as his own People's Action Party (PAP) - had also wondered if the goodies handed out on Feb 17 were election sweeteners.

Responding yesterday, Mr Lee put Budget 2006 in context. It comes after six years of economic upheaval, when workers lost jobs in the downturn. Many could not cope as the economy restructured.

Now, the economy was in better shape and the Government could afford to share some of the Budget surpluses with all Singaporeans, he said.

While generous, the $2.6 billion 'Progress Package' was not large compared to the $2.5 billion New Singapore Shares given out in 2001 and the $2.7 billion Economic Restructuring Shares given out in 2003, he said.

This year's package has been designed with 'growth dividends' for everyone, but it is weighted in favour of the old and poor.

These two vulnerable groups needed the most help, he told MPs who lamented that some groups were neglected, such as the asset-rich but cash-poor, housewives and younger low-wage workers.

Budget 2006 also marks a shift in Government thinking.

Said Mr Lee: 'While sharing the fruits of growth is something the Government has periodically done, this Budget is different because it recognises that the world has changed and growth will no longer deliver the same opportunities to every individual. Going forward, we will work systematically to ensure that no Singaporean is left behind as we forge ahead.'

MPs had also made many suggestions on streamlining the proposed Workfare Bonus for low-wage workers. Mr Lee said he heard their views. Indeed, he announced a small change: those who have worked for least six months in the last year will now qualify for the bonus. They need not have worked for a continuous six months, as previously announced.

While dealing with MPs' many queries, Mr Lee in his 90-minute speech also outlined in broad strokes the Budget's key priorities.

One of these is to grow the economy through investments in various sectors such as service, research and development, and to encourage enterprise. Another is to maintain fiscal prudence and make sure help schemes are financially sustainable.

As for the fear that Singaporeans might come to expect generous handouts as an entitlement, and even fritter them away on 4-D, Mr Lee was more optimistic.

He pointed to press reports of prudent Singaporeans saying they would save the bonuses to pay bills or for their children's education.

'These are the stories which give you heart and hope and convince me that we are doing the right thing by Singaporeans,' he said.

To MPs alarmed that this year's generous handouts and Budget deficit of $2.86 billion might mean that the Government was abandoning its fiscal prudence, PM Lee said this was hardly the case. Even after the giveaways this year, there would still be some $730 million left over at the end of this term of Government, he noted.

The PAP government, he pledged, would stick to its fiscally prudent philosophy of ensuring that 'every term of Government must live within its means and the Budget must be in overall balance over the economic cycle'.

Summing up, Mr Lee was confident that Budget 2006 would pave the way for future growth.

'We are on one mountain, we're climbing up. We see a whole range opening up in front of us. There is a whole range of possibilities ahead.

'With the skills and the strengths we have acquired climbing the first mountain, we are now stronger and better placed to conquer the next higher peak, and then the next.'

Asia1.com

skeujin SG

lets have a wager.

i say some utilities or tax is gona b raised after the GE.

who says otherwise?

charlize SG

I find it amazing how simple things can be twisted to mean other things even though everybody knows exactly what those things are. Laughing

LinYu SG

"when told too often, very thing become true", quote from you know who Laughing

charlize SG

You must admit this is a brilliant tactic constantly used in Singapore.

And to superb effect too. Laughing

dragg SG

who will believe it?

charlize SG

The government. Laughing

Yi Peng SG

I think its a good idea. They pay us, we vote for them. Nothing to be ashamed about. If they run a ba dshow, we fire them. Its that simple.

charlize SG

You can fire them? Laughing

Yi Peng SG

Sure, why not?
If we can't fire them, why is there a need for sweeteners?

Atobe SG

Originally posted by Yi Peng:
Sure, why not?
If we can't fire them, why is there a need for sweeteners?

It is because you can fire them that they give you sweeteners.

Cry loud enough, and long enough, either your parents will shout at you, or they will distract you with some sweet items that shut you up, and forget the cause that got you crying.

But then again, can you fire your PAPa ?

BillyBong SG

How do you fire someone in a no-contest walkover?

You can't even vote, let alone dismiss them.

charlize SG

The government has to give the impression that they serve the people during GE time.

Once the GE is over, they will take back all the swetteners they have given to Singaporeans and then it is back to the people serving them. Laughing

Archie_boy SG

I certainly agree that the budget handout is not sweeters but.... out to get some employers who did not pay CPF for their elderly employees.

The issue of a payout for the elderly who remain employed for the last six months is an eyewash. If they are employed, obviously CPF would reflect that but they told those who does not have CPF to submit info to prove they are employed is really to get those employers who did not contribute CPF for them... haha... you think is sweetener, NO! Is one stone 3 birds.

Yi Peng SG

If we cannot fire them, they don't even need to pretend in the first place and you don't need to attack them.

charlize SG

Newly registered nick.

Salman not around.

The rest can make up their own minds. Laughing

Yi Peng SG

I have made up my mind that you can’t back up your logic. Thank you.

lwflee SG

Politicians... Rolling Eyes

I could not dig; I dare not rob;
Therefore I lied to please the mob.
Now all my lies are proved untrue
And I must face the men I slew.
What tale shall serve me here among
Mine young and defrauded young.

~ "A Dead Statesman", Kipling

LinYu SG

March 7, 2006
Budget goodies not an election 'sweetener'

I FIND the claim by the opposition that the recent Budget was aimed at winning votes for the Government ludicrous.

Firstly, what votes are the opposition parties talking about? For several decades now, voters have supported the People's Action Party (PAP) Government, both in good and bad times.

The PAP Government, clearly an icon, is viewed with admiration and envy by leaders and citizens of many nations.

Opposition parties had plenty of time, over the years, to prove their worth. They went on campaigns to try and win voters over to their plans for a better Singapore, and each time the voters shut them out, except for two constituencies.

The PAP team has shown that it delivers on its promises. It is always ready with a new pool of leaders to ensure continuity in the governing process.

It understands its responsibility: It is not about winning one election; it is about securing continual growth and benefits for the nation and its people.

The opposition parties would like the people to believe that whenever they bite the dust in an election, it is not a case of voters rejecting their candidates or plans but rather one of voters being bought over with 'sweeteners' from the incumbent government.

This insults the intelligence of voters. Voters have matured over the years and still they go with the winning team. They are definitely not puppets on a string.

A successful government is entitled to reward its citizens and this is part of the governing process. The citizens have worked hard and shown their devotion to nation-building. The Government will have to respond in the right fashion to all their contributions.

We have been given scholarships, bursaries, special business loans, education subsidies and more. Surely, these are not 'sweeteners'. They are a necessary part of a responsible governing process.

Now the Government intends to do more for the lower-income group and the needy. This effort is endorsed even by the wealthy who would like to contribute towards the cause of the needy.

The PAP Government is on another level in its journey to build a great and dynamic nation of strong and loyal citizens. It has taken stock of its progress and decides to share some of the fruits of labour with the people. This is the hallmark of a responsible government. If this is a 'sweetener', then it is a sweetener only because it sweetens the lives of those who believe in the PAP Government.

We had a serious economic downturn in 1997, then we had Sars and the fuel crisis. We have still to contend with the threat of terrorism and bird flu and we must also not forget there is global economic competition.

These are not little problems - they are colossal ones but the Government has weathered the storms well.

However, its members do not go around bragging about their achievements. On the contrary, they constantly remind us to continue to work with them as a team to prevent destructive elements or diseases from proliferating, which can destroy all the good that has been done in the last four decades.

Prem Singh

alwaysdisturbed SG

i tink its wearing off...
ppl r nt as blind as b4...