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PSP wants 100% of NIRC, WP 60%, or even 70%. What if our forefathers had wanted more NIRC?

future, NIRC, WP, care, forefathers, government, GST, spend, world, WP, PAP

It is said that without a vision, the people perish. Visionary leaders take care of the present with their eyes on the future as well so that the people can be future-ready.

Singapore introduced the NIR framework back in 2008. The framework allows the Government to treat 50% of net investment returns as government revenue for spending. The framework started out with the reserves managed by GIC and the Monetary Authority of Singapore. Temasek Holdings was then included in the framework in 2015.

A 50:50 division of NIRC takes care of both the present and the future Singaporeans in a fair way. Equal treatment of present and future generations of Singaporeans.

Today (FY2022), the NIRC is expected to be $21.6 billion. This is tripled the $7 billion in FY2009 when it first started making its contribution. 

sgmatters.com a country that does not take care of its future has no future a country that does not take care of its future has no future

What the PSP and WP want

The PSP wants 100% of the NIRC to be used while the WP wants 60%, even 70% of it to be used.

Our forefathers did not spend the NIRC.

What if our forefathers had the mentality of the WP?

Suppose our forefathers had decided to spend from the NIRC. And because they spent from the NIRC, today we have less in NIRC.
Suppose we have 20% less NIRC to spend.
The NIRC for FY2022 is $21.6 billion.
If we have 20% less from NIRC, this is equivalent to $4.32 billion less. (20% of $21.6 billion is $4.32 billion).
The 2% GST hike is intended to raise $3.5 billion. 
If our forefathers had the mentality of the WP, today we will need to raise $7.82 billion instead of $3.5 billion.
 
If our forefathers had the mentality of the WP, today we will need to raise $7.82 billion instead of $3.5 billion.
The GST hike will have to be more than 2% to achieve $7.82 billion.
The GST hike will have to be more than doubled.
You will pay at least 11% GST instead of 9%.
This is what will happen if the WP’s proposal to spend more from NIRC is adopted. This is what will happen when WP said they are just asking to ‘slow the growth’ of reserves.
It is common sense that when you ‘slow the growth’ of reserves, you will reduce the size of investment returns.

Raiding future generations

𝐓𝐡𝐞 𝐖𝐏 𝐩𝐫𝐨𝐩𝐨𝐬𝐞 𝐭𝐨 𝐭𝐚𝐤𝐞 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐛𝐮𝐫𝐝𝐞𝐧 𝐭𝐡𝐞𝐦 𝐰𝐢𝐭𝐡 𝐡𝐢𝐠𝐡𝐞𝐫 𝐭𝐚𝐱𝐞𝐬 𝐫𝐞𝐬𝐮𝐥𝐭𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 𝐝𝐢𝐦𝐢𝐧𝐢𝐬𝐡𝐢𝐧𝐠 𝐍𝐈𝐑𝐂 𝐟𝐨𝐫 𝐭𝐡𝐞𝐦.
𝐖𝐡𝐨 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐒𝐢𝐧𝐠𝐚𝐩𝐨𝐫𝐞𝐚𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬? They could be YOU in your twilight years. They are your children, children’s children, family, relatives, friends.

Where do we stand today

These are the facts of today. 

1. Today, h𝐚𝐥𝐟 of us working Singaporeans 𝐝𝐨 𝐧𝐨𝐭 𝐩𝐚𝐲 𝐚𝐧𝐲 𝐢𝐧𝐜𝐨𝐦𝐞 𝐭𝐚𝐱.
 
2. 80% of us who do pay income tax pays 𝐚𝐧 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐫𝐚𝐭𝐞 𝐨𝐟 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝟒%.
 
3. With the Enhanced GST Voucher Scheme, the 𝐛𝐨𝐭𝐭𝐨𝐦 𝟑𝟎% 𝐨𝐟 𝐡𝐨𝐮𝐬𝐞𝐡𝐨𝐥𝐝𝐬 𝐰𝐢𝐥𝐥 𝐩𝐚𝐲 𝐚𝐧 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐆𝐒𝐓 𝐨𝐟 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝟑%.
 
4. The 𝐞𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐀𝐬𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐏𝐚𝐜𝐤𝐚𝐠𝐞 𝐰𝐢𝐥𝐥 𝐝𝐞𝐥𝐚𝐲 𝐭𝐡𝐞 𝐆𝐒𝐓 𝐡𝐢𝐤𝐞 𝐛𝐲 𝟓 𝐲𝐞𝐚𝐫𝐬 for lower and middle income households.
Singaporeans are paying low-to-no taxes to enjoy among the best amenities and services in the world.
Our highly subsidised education system is among the top in the world. Today, 70% of a primary cohort has either a diploma or degree. Our healthcare system is among the top in the world and many who have gone through the system can testify that it is indeed affordable. Our public transport is among the top in the world with fares among the lowest in developed countries. 
Our CPF scheme is one of the top pension schemes in the world and Singaporeans have woken up to the fact that it is really good. They are now voluntarily topping up their CPF accounts. Our public housing is like no other with the PAP Government committing itself to do 2 upgrading exercises for the flats (in 30th and 60th year) to keep them in liveable conditions. 

Here in this country, the PAP Government spares no effort to uplift the lower income group and their children through various programmes like KidSTART and UPLIFT. The vulnerable groups are being taken care of including our inmates in prison where help is rendered to help them reintegrate back to society, where potential is being unlocked through prison school, giving the young second chances at life. 

The future will come!

The future will come. It takes political courage for the PAP Government to do right not just by the present generation of Singaporeans, but by the future generations as well.

It takes the Singapore spirit for Singaporeans to arise and care, and say, “We own the future!”

A country that does not take care of its future has no future. 

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