The Government set aside money for future spending when it is able to and then spend from what is set aside.
This is why schemes like the Pioneer Generation Package and the Merdeka Generation Package with an injection of $8 billion and $6.1 billion respectively at inception, pose no financial burden to Singaporeans because they are already fully funded.
With money already set aside, Singaporeans can also be assured of the government’s ability to honour their promises.
No Government should make
empty promises
Back in 2019 when the Merdeka Generation Package was announced, there were concerns over how it would be funded.
In the first two to three years of a new term of government, it works very hard to carefully manage the Budget and grow the economy. “Because the rule in the Singapore system is that no government can make – or should make – empty promises on behalf of a future government,” he said in a speech at a Chinese New Year dinner for Tanjong Pagar GRC and Radin Mas SMC in February 2019.
“If we decide to have the Merdeka Generation Package… then it is the responsibility of this term of government to harness its resources to put them into a fund, to make sure that this burden is not passed on to the next government or future governments.”
The Pioneer and Merdeka Generation Packages are examples of how surpluses are being used to benefit Singaporeans.
The question often asked of surpluses is: what happened to surpluses?
We give them (surplus) all back to Singaporeans in different forms.
Whenever fiscal position allows them, the Government makes special transfers including top-ups to Endowment and Trust Funds.
