Read more at https://www.channelnewsasia.com/news/singapore/finance-minister-heng-swee-keat-on-workers-party-gst-hike-budget-10002450
(Updated: )
Ricky Lim ·
“We deliberately introduced rules on land sales and the 50 per cent NIRC cap so that we do not succumb to the temptation to draw more from our reserves to fund current expenditure or eat into the principal sum,” he said.
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50% of reserve income save and 50% of reserve income spend --- will be the best formula --- as it used half for current spending and plough back half to earn more income.
If this formula is tamper with - Singapore will be in for trouble.
For eg. now say use 60% for spending and save 40% - so less income will be generated as more will be spent.
Another few years down the road, someone will say, let us use more 70% for spending, and save 30%.
Then another few years down the road, someone say let use 90% and save 10%.
And finally one day, someone say, let use all 100% for spending and save 0%.
This is moving away from Middle Path - and will spell trouble for Singapore.
So keep this 50-50 formula is the best formula - as it induced prudent spending of 50% and prudent saving of 50%.
--
50% of reserve income save and 50% of reserve income spend --- will be the best formula --- as it used half for current spending and plough back half to earn more income.
If this formula is tamper with - Singapore will be in for trouble.
For eg. now say use 60% for spending and save 40% - so less income will be generated as more will be spent.
Another few years down the road, someone will say, let us use more 70% for spending, and save 30%.
Then another few years down the road, someone say let use 90% and save 10%.
And finally one day, someone say, let use all 100% for spending and save 0%.
This is moving away from Middle Path - and will spell trouble for Singapore.
So keep this 50-50 formula is the best formula - as it induced prudent spending of 50% and prudent saving of 50%.
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