SURPLUS FORECASTING<\/p>\n
MP Gerald Giam (WP-Aljunied) pressed further on the government’s fiscal projections, and what he described as a \u201crecurring pattern of overly conservative\u201d forecasts.<\/p>\n
The revised FY2025 surplus of S$15.1 billion is more than double the original estimate of S$6.8 billion \u2013 a discrepancy Mr Giam said was not an isolated incident but part of a consistent trend in which “projected deficits regularly transform into healthy surpluses”.<\/p>\n
\u201cWhile the government points to the volatility of tax revenue, this consistent underestimation raises fundamental questions of \u2026 whether the government is unnecessarily hoarding funds,” he said.<\/p>\n
\u201cWe need more accurate forecasting that ensures our nation’s abundance benefits current generations as much as future generations.\u201d<\/p>\n
Mr Giam also questioned the necessity of the GST hike, which was supposed to fund increased healthcare costs, since surpluses had exceeded S$1 billion in all but one of the last five years, with a total of S$22 billion.<\/p>\n
He pointed out that the Ministry of Health’s revised operating expenditure for FY2025 came in S$305 million lower than estimated, due to lower-than-projected funding needs for public healthcare institutions, and asked whether the government would revise its projections for future healthcare expenditure growth.<\/p>\n
He also flagged a sharp rise in revenue from licences and permits, which surged by 29 per cent to reach S$9.23 billion in revised FY2025 figures, and sought clarification on what drove the increase.<\/p>\n
\u201cTrue prudence is not just about amassing vast fiscal buffers. It’s about balancing future security with the current needs of our people,\u201d he said.<\/p>\n
\u201cUnnecessary taxation drains liquidity from households up front, creating a dependency on government handouts rather than fostering genuine financial independence.\u201d<\/p>\n
MINISTERIAL BONUSES AND GDP GROWTH<\/p>\n