Can an increase in GST help the poor?
The Government said increasing GST is a strategy to help the poor
Our Prime Minister, Lee Hsien Loong, had said the increase in its sales tax from 5 per cent to 7 per cent is to help finance more government spending for the poor while suggesting corporate tax rates would be cut to enhance the country's competitiveness in attracting foreign investment.”
Is the increase in GST helping the poor or to increase spending on needless expenditure on lavish furnishing to government offices?
A letter in the Straits Times forum “"Needless expenditure on English courses” appeared earlier in Sep’ 07 had envisaged the government to think twice before spending the taxpayers’ money unnecessarily when he came across a Gebiz tender, in which a government school seeking private-sector companies to conduct English courses for its PRC scholars, paying at least $35,000 for 300 hours of instruction.
I had just visited a government office last week and saw that the staff is sitting on Herman MillerÂ’s Aeron chair. I was appalled at the extravagance and wonder if the government is adding another 8th and 9th wonders to Mr Tan Soo KhoonÂ’s 7 wonders list.
In 2003, Mr Tan Soo Khoon, Member of Parliament for East Coast GRC, when he was asked for his views on the Government's current save-money drive, he had likened some new government offices to five-star hotels and wondered aloud whether the ministries and statutory boards housed within, were competing to see 'which can be better than the Four Seasons Hotel'
Mr Tan commented that some government agencies could do without frills and extravagance, and that this would help contain public spending
He had raised the point during the Budget debate, when asking if the Government needed to raise the Goods and Services Tax to prevent the Budget falling into deficit.
When it comes to government buildings, he said there should be two guiding principles: They must be functional and comfortable.
'We should not go overboard to make them lavish or luxurious,' he said.
The so-called 'seven wonders' have been or are being built.
'What's done is done,' said Mr Tan. What is more important, he said, is that the awareness has been created and the Government is more conscious of this issue.
'They have issued a directive to be economical about things.
'I think things will change.'
Is it true that things had changed? Is it true that the government is looking at ways to contain public spending?
On one hand, the government is telling Singaporeans the need to increase the GST is to help the poor but on the other hand, we see government spending lavishly on their office furnishing.
I think the agencies in question need to sit down to look into this seriously. What are the priorities? Is the luxury of installing a golden tap in a CEO officeÂ’s toilet to reflect his status the top priority of these officers who are the decision makers on how the public money should be spent on?
What an irony to see these top officers sitting in their lavishly furnished offices making measures to control Government expenditures and reduce wastage of resources and funds.
Opposition groups say Singapore can afford to spend more on its poor since the government's financial reserves are among the largest in the world when measured against gross domestic product.
So is the recent increase in the GST to 7% necessary? Is this increase use for helping the poor or to support the lavish life style of the officers in question?
I hereby seek all the ministries and statutory boards to spend the public money prudently. I believe the staff does not need to sit on an expensive Herman MillerÂ’s chair in order to work well. I cant help but conclude that any extravagant spending is a selfish act to reflect their status as the expense of the public funds.