There is no basis to these claims, and they are inconsistent with what the Government has recently stated.
There have been claims on some online websites that the Government will raise the GST after the forthcoming General Elections to fund increased spending planned in the next term of government. There is no basis to these claims, and they are inconsistent with what the Government has recently stated.
In the 2015 Budget Statement in February, DPM Tharman Shanmugaratnam stated that the revenue measures the Government had already undertaken will provide sufficiently for the increased spending planned for the rest of this decade1.
Budget 2015 introduced important revenue measures such as the inclusion of Temasek in the Government’s Net Investment Returns (NIR) framework from 2016 onward2, and the increase in the top marginal rates for personal income tax from Year of Assessment 2017. These measures came after moves in recent years to make Singapore’s property tax rates more progressive, with significantly increased tax rates for high value residential properties, offsetting reduced tax rates for lower value homes.
In rounding up the 2015 Budget Debate, DPM Tharman stated, “We have prepared ourselves in advance and that must remain the way in which we plan for our budgets in the decades to come. With the change to incorporate Temasek in the NIR framework and the other tax changes I have introduced, in particular the increase in the personal income tax rate, we will be in a good position for at least the rest of this decade.”3
The Government’s approach remains that of responding to changing circumstances and planning revenue measures in advance of Singapore’s future needs. Through this forward-looking approach, we have been able to meet the growing needs of our people in healthcare and invest in our future, while preserving fiscal sustainability and Singapore’s Triple-A credit rating.
1The Statement for Budget 2015, delivered by DPM Tharman Shanmugaratnam, said, “Based on current projections, the revenue measures we have undertaken will provide sufficiently for the increased spending needs we have planned for till the end of this decade.” (Refer to paragraph G38 of the Budget Speech)
2In July 2015, the Singapore Parliament approved amendments to the Constitution to effect the inclusion of Temasek Holding in the Net Investment Returns framework.
3The Hansard record of DPM Tharman’s Round-Up Speech for Budget 2015 is at http://sprs.parl.gov.sg/search/topic.jsp?currentTopicID=00007428-WA¤tPubID=00007404-WA&topicKey=00007404-WA.00007428-WA_3%2Bbudget%2B
Factually SG50 Edition: Fun facts about our "little red dot"!
Will Singapore Savings Bonds be used to finance an "underground city"?