Let’s be clear.
This is why it burns a big hole in HDB’s budget and causes a deficit.
Suppose you bought a property in 1965 and paid $10k for it. Today, if you want to use your property as collateral for a loan, you will be horrified if the bank tells you the value of your property is what you paid in 1965.
Accounting sleight of hand looks like this!
Now, let me show you what accounting sleight of hand looks like.
Here’s a hypothetical example.
Tada! The deficit is gone!
That, my friend, is accounting sleight of hand.
The suggestion that a government can arbitrarily set a value for land is dangerous!
It makes for non-transparency and therefore little accountability.
Why non-transparent? Because there is no benchmark. It is priced arbitrarily. It can be any price.