Budget 2025 Debate: PM Wong rebuts Leong Mun Wai’s claim on surplus, defends Govt’s fiscal approach

Описание: During the Budget debate in Parliament on 28 February, Prime Minister and Finance Minister Lawrence Wong refuted NCMP Leong Mun Wai’s remarks on the government’s surplus, asserting that fiscal policies should be guided by sound principles rather than arbitrary spending increases.

Leong posed over 10 questions to PM Wong, covering topics such as budget structure, public housing, and the Net Investment Returns Contribution (NIRC).

Questioning whether the government aimed to maintain a balanced budget or accumulate as much surplus as possible, Leong suggested that the government appeared to adopt a “the more, the merrier” approach to surpluses. He argued that excessive taxation and overcharging contribute to structural inflation.

Leong also raised concerns about the allocation of NIRC, estimating that $70-$80 billion was held in endowment and trust funds instead of being spent immediately. He asked whether the government would reconsider using these funds for social spending or to mitigate tax hikes, such as the GST and property taxes.

On public housing, he sought updates on the lease decay issue, alternatives to PSP’s Affordable Homes Scheme, and safeguards against a potential collapse in the resale market due to increased BTO supply.

Additionally, he challenged the government’s stance on inflation, arguing that the GST hike had contributed to rising costs and that ground inflation, particularly for cooked food, felt much higher than official statistics suggested.

In response, PM Wong rejected Leong’s characterisation of the government’s budgetary approach and reiterated that all government revenues are used for the benefit of Singaporeans while adhering to strict fiscal rules.

Instead of altering fiscal policies to accommodate more spending, the government would raise revenues only when necessary. Wong also warned that disregarding fiscal discipline could weaken Singapore’s financial position and ultimately harm its citizens.

Addressing Leong’s concerns on the NIRC, Wong clarified that all NIRC revenues are first deposited into the Consolidated Fund before being allocated for spending, countering Leong’s claim that trust funds do not constitute “real spending.”

He explained that funds earmarked for endowments support future infrastructure projects, such as Terminal 5, with financing done through a combination of direct funding and the SINGA model to ensure intergenerational equity.

Wong further argued that Singapore’s tax burden remains relatively low compared to other advanced economies, which allows the government to maintain fiscal strength while providing responsive support to its citizens.