Budget 2025 debate: MPs discuss GST hike, support for families, caregivers and seniors

Non-Constituency MP and Progress Singapore Party (PSP) chief Hazel Poa echoed Mr Singh’s sentiments, arguing that the GST increase has contributed to the higher cost of living in Singapore.

“Let us also not forget that larger surpluses that go into the reserves mean bigger cost burdens on taxpayers when the government collects more than is needed to spend on public programmes,” she said. 

MP Foo Mee Har (PAP-West Coast) said questions about whether the GST increase could have been delayed was “20/20 hindsight”. The unexpected surplus was primarily due to strong corporate income tax revenue, she added. 

It is prudent to maintain “fiscal dry powder” to respond to unexpected economic shocks, said Ms Foo. 

She also criticised proposals from WP and PSP to fund recurring expenses through land sales. 

“Had we followed this path, Singapore could be facing the same fiscal vulnerabilities as Hong Kong today,” said Ms Foo, adding that Singapore’s approach is more stable and forward looking. 

SUPPORTING FAMILIES AMID DECLINING BIRTH RATE

MP Lim Biow Chuan (PAP-Mountbatten) welcomed the financial support for large families but questioned its effectiveness in encouraging couples to have more children.

If this is the scheme’s goal, the government must “go back to the drawing board” to understand why many couples are not having children.

Singaporeans lead lives that are stressful and they need to redefine success, said Mr Lim. 

Adding that he has received emails from ministers late at night, he pointed out: “If the entire civil service were to follow the lead of their ministers, then sadly, all of us will have a stressful life.” 

He urged the government to review the culture of working long and stressful hours and conduct a “thorough study” on whether better lifestyles would allow Singaporeans to consider having bigger families. 

In 2023, Singapore’s resident total fertility rate dropped below 1.0 for the first time.