The case for a 9% GST

INDRANEE Rajah, Singapore's Second Minister for Finance, was spot-on when she observed in Parliament on Monday that the government's cash surpluses from 2011 to 2019 do not reduce the need for the planned increase in the Goods and Services Tax (GST).

A prudent government should pay for today's expenses using today's receipts. It reflects a healthy operating dynamic and preserves inter-generational equity for future generations of Singaporeans. As a matter of principle, we should be allowed to additionally dip into our reserves only in exceptional situations like the present Covid-19 crisis and only as far as necessary.

Raising GST is a straightforward means of ensuring that we only spend what we have.