Govt mindful of concerns, says Lawrence Wong

SINGAPORE — The 2 per cent cut in budget caps of all ministries and organs of state does not mean that overall government spending will go down by the same amount, said Second Finance Minister Lawrence Wong.

Ministries with projects that are of “national importance or of priority to them” will still receive funds for these projects, clarified Mr Wong.

He was speaking on the sidelines of a recording of the Singapore Budget Forum 2017, which will be televised on Channel NewsAsia tomorrow, a day after Finance Minister Heng Swee Keat announced in his Budget speech that the Government would review the tax regime to beef up its coffers to fund growing needs in the long term.

The Government must also continue to spend judiciously, hence the 2 per cent cut in budget caps.

Yesterday, Mr Wong said that, with expenditures rising because of healthcare, an ageing population as well as infrastructure needs, it is fair that the Government has to think of ways to raise revenue to balance the budget.

New taxes or higher tax rates are not causes for alarm, but a call for Singaporeans to recognise that there are “difficult things that we have to do together”, rather than “leave problems or difficulties for the next generation”, he reiterated.

Addressing the business community’s disappointment over the Budget’s inadequate short-term support to lower business and compliance costs, Mr Wong said that the Government has taken a targeted approach to address the uneven growth, with sectors such as marine and process as well as offshore engineering not doing well.

He pointed out that short-term measures such as the Wage Credit Scheme, where the Government co-funds 40 per cent of wage increases, are still in place to help businesses.

The Government was “mindful” of the concerns, and will see if more can be done to help businesses if need be, he said.