Jamus Lim questions GST hike as PM says SG would've faced FY2024-25 deficit without tax surge скачать в хорошем качестве

Jamus Lim questions GST hike as PM says SG would've faced FY2024-25 deficit without tax surge

During the Budget debate in Parliament on 28 February, Prime Minister and Finance Minister Lawrence Wong defended the GST hike, stating that Singapore’s strong fiscal position was due to early revenue-raising measures. He emphasised that without the GST increase—given its unpopularity—and the unexpected surge in corporate income tax collections over the past two years, the government would have ended the last financial year in deficit. Workers’ Party MP Assoc Prof Jamus Lim questioned the justification for the GST hike, noting that the expected shortfall it aimed to address was around $3.7 billion. He pointed out that while last year saw a small surplus, this year’s surplus appeared significant, and asked if GST revenues had exceeded expectations. In response, PM Wong explained that without both the GST hike and the unexpected rise in corporate income tax, Singapore would have faced a deficit in FY2024 and FY2025. He highlighted that corporate income tax collections had increased from an expected 3+% of GDP to over 4% of GDP, forming a higher base for future budgets. However, he maintained that without these additional revenues, FY2025 would still see a deficit based on current spending plans.