Budget Speech 2005

Qitai SG · 2005-02-23T13:21:11+00:00

To give a detailed alternative Budget plan here needs someone who has studied Economics in a much higher level. I'm sorry but I ain't an expert.

Qitai SG

It's this Friday. Wonder what will change this time. There is some speculation that car tax may be reduce. And maybe the tabocca and alcohol tax may go up again.

For a start, below is a way to give feedback to government (although we may get the usual problem of talking to an answering machine). Can have a bit of fun playing with the numbers there.

http://app.mof.gov.sg/budget_2005/choice/start.asp

Enjoy. Would be interesting if some of you can post how you will change the budget.

macjoe SG

An extremely bloated, wasteful and misallocated budget in my personal opinion.

Under-allocated budget items
=====================
Help SMEs, e.g. financial aid for upgrading by businesses, micro loans
$130m

Support marriage & parenthood, e.g. childcare subsidies, Baby Bonus
$170m

Help the disabled & needy, e.g. special education schools, social assistance
$70m

Subsidise care for the elderly sick at nursing homes, day care centres & hospices
$50m

Rolling Eyes

Qitai SG

This is what I did.
------------------------------------------------------------------------

SPENDING

Social
Enhancing our housing & living environment +1.2%
Providing good & affordable healthcare +10%
Helping families & providing social safety nets +10%
Educating our next generation -7.7%
(Not that education is not important, but schools nowadays got too much $$ nowhere to spend liao)

Security & External Relations
Ensuring a safe & secure home no net change

Economic
Building a competitive economy +10%
Providing a good transport infrastructure +2.7%
(I max the funding for rail and minimize the funding for road)

Government Administration
Building an efficient & responsive public sector +5%

Tax Revenue

Corporate Tax Rate 18%
Individual (top marginal) Tax Rate 18%
GST Rate 7.5%
Vehicle Ownership Taxes -10%
Tobacco Taxes no change
Liquor Taxes no change
Betting Taxes +10%

Special Help Measures Your Choice
Provide CPF top-ups? $125m
Give cash support? $250m
Give tax rebates? $0m

Qitai SG

I increase all those things to max too. Cut education since the funding there is too much and schools now very wasteful in their spending.

robertteh SG

Past budget approach is a too narrow approach - pro-spending, pro-extracting and anti-entrepreneurial. We should examine past budget assumptions such as following:-

(1) Allocate budget to ministries and departments based on past or
historical spending averages.
(If past is waseful it will continue to be wasteful then)

(2) Pro-foreign investment with incentives/tax holidays.
(Consider: what is wrong with using pro-foreign incentives to stimulate
related domestic sector which in turn will stimulate the type of foreign
investments targetted)

Carry out an independent study to look for alternative method to attract foreign investments. The final method should be balanced and not at the expense of neglecting or undercutting the related domestic sector. Direct incentitves to foreign investments may cost our domestic sector to lose out.

Aim at pro-growth and co-investment strategy which may be more intricate to do but at least we would not keep shrinking our domestic sector.

All the pro-foreign in the form of direct incentives have been given to related domestic sector, the results might be better as both domestic and foreign investments will be stimulated. So try to make some change to past direct incentives to foreign investments as cost-wise we are losing out and many competitors are doing better in our traditional direct-incentive approach.

Pro-domestic co-investment theme should dominate the budget to spin overall investments. Taxing and collecting change to one that will spin the dollars around more times to stimulate growth.

Laughing

Qitai SG

Always so much theory. Can translate to practical action or not? Mad

robertteh SG

If past approaches have caused our own domestic sector to go down, then the only alternative - a practical one - is to think out of the box. If not sure, let's do a study or keep in mind for next budgeting exercise. Laughing

macjoe SG

Even maxing up the under-allocated budget items is nowhere compared to
the mega quantum over-allocated (and some wasteful) items are allocated.

For example, look at the budget for a good transport infrastructure.
It's $1.8 billion. How many Singaporeans/businesses will truly stand to benefit
out of it? Look again at the $1.4 billion to build an efficient & responsive public sector. I think a combined $140 million is already excessive. Look now at the $2.27 billion budget to "ensuring a safe & secure home". It's too much. How much is the defence budget to also "ensure a safe and secure home" too?

I don't know how you guys/gals feel about it but to me, am quite disappointed at the budget but mostly, the finance minister's lack of astuteness.

Shocked

Qitai SG

You want to post what changes you will make and the rational behind it?

FireIce SG

tabocca!?
wats tt? Laughing

i used to sit-in budget speech and budget speech debates
it was for academic purposes....dry and mono.....but i have to sit thru it....(politics and econs are not top of my interests)
missed the last yr one......and will miss this yr one's too.....
the debates tt will come later will be more interesting.....more relaxed and can hear ministers trying to crack cold jokes

macjoe SG

I think we'll see in this budget significant spending but the entrepreneur,
businessman, company, married, student, elderly will hardly enjoy
anything significant.

Mr. Green

iveco SG

Just played with the figures there. Result is a $1,876,000,000 surplus.

Qitai SG

Why you never reduce tax then? Mad

iveco SG

I only raised "sin" taxes, road taxes and GST nia. Corporate and personal taxes untouched. But I did subsidise more healthcare programmes, though.

Qitai SG

Who gain then Rolling Eyes

Anyway, today 3:30pm see loh.

I expect the following to be announce liao. Let's see if my guess is correct later.

1) Indiviudal income tax reduce (IRAS accidently annonuce it yesterday already)

2) Car tax reduction (Many people expecting this)

3) Cigar tax increase (This has been happening for years)

4) University subsidizes reduce (Government being doing this for years)

Don't know what else to expect.

Qitai SG

Why raise GST then if got so much surplus? Mad

Qitai SG

BUDGET 2005 KEY INITIATIVES

Creating Opportunity, Building Community

FOR INDIVIDUALS

Personal income tax reductions [$150 million in YA2006 and $310 million in YA2007]
X Top personal income tax rate lowered from 22% to 21% with effect from YA2006, and further reduced to 20% in YA2007. Marginal tax rates of all other brackets also reduced.

Edusave top-ups [$50 million]
X Edusave top-ups of $100 for all primary and secondary school students.

Medisave top-ups [$320 million]
X Medisave top-ups ranging from $50 to $350, depending on age.

Medifund top-up [$100 million]

CPF top-ups for older Singaporeans [$80 million]
X $100 top-up to the CPF Special or Retirement Accounts of Singaporeans aged 50 and above.

Baby Bonus Scheme enhancements
X Co-saving contributions up to the co-savings limit allowed any time within the six year period.
X Expansion of range of uses of co-savings to include health insurance, and early intervention programmes for children with special needs.

Foreign maid levy reduction [$90 million]
X Foreign maid levy reduced by $50 per month.

Lifelong Learning Fund top-up [$500 million]

ComCare Fund top-up [$254 million]

Encouraging savings for retirement [$8 million]
X CPF voluntary contribution cap increased and aligned to the mandatory contribution cap.
X Tax relief cap for the self-employed to contribute to CPF increased to the tax relief cap for CPF contributions by employees.
X Criteria for CPF members to top up the Retirement Accounts of their parents and non-working spouses liberalised.
X Common contribution cap for the Supplementary Retirement Scheme (SRS), set at 17 months of the CPF salary ceiling.

Help households meet utilities cost [$62 million]
X Utilities-Save scheme for HDB households, with more for smaller house-types.

Discourage smoking
X Increase in excise duty on cigarettes from $293 to $352 per 1,000 sticks with immediate effect.

Reduce illegal horse-betting activities
X Horse betting duty changed from 12% of gross stakes to 25% of gross profits.

Give relief from stamp duties
X Remission of stamp duties paid on aborted transactions.

Encourage Philanthropy and Community Involvement [$23 million]
X Recognise the advancement of sport as a charitable purpose.
X Double tax deduction granted for donations with naming opportunities.
X Computer Donation Scheme extended to include computer hardware and software donated to Institutions of a Public Character (IPCs).

Elfred SG

Today went with the others, quite dry no doubt. I don't think you'd miss out too much. Laughing

I guess I won't go for the debates.

But this year got Ms Eunice, so can see personally how she perform instead of reading from papers.

It just confirms myself that parliament is really quite boring. Kinda not what I have expected.

Still, quite enriching. I suppose unless necessary, won't be going again. Laughing

timothytsgsg SG

Laughing

if only the PAP can do that...think outside the box? LHL himself? That's a laugh!

macjoe SG

Dear PM, how come there's no announcement of a
proper Finance Minister? Surely the country needs a proper
PM and a proper Finance Minister. And please no foreign talent
for the post.

Question