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The eventual cancellation of the Kuala Lumpur-Singapore high-speed rail project will have no impact on plans to increase the Goods and Services Tax (GST), said the Second Finance Minister Lawrence Wong, pointing out that
He was responding to Labor Party leader Pritam Singh (Aljunied RCMP) who asked if the abandoned scrap metal train would have implications for plans to raise the GST from 7 to 9 per cent.
"Mr. Singh tried to link the prospect of canceling the SSR project to the government's announcement to increase the GST," Wong said. "But these are two separate issues."
The increase in the GST, which was expected to occur between 2021 and 2025, was never intended to fund wholesale investment in infrastructure such as LGV, a- he said. It is rather a way to increase recurring revenues to cover current needs such as health care, security and social spending, which should drive up public spending in the years to come. to come, he added.
"The increase in the GST rate will not be affected by the outcome of the HSR project," he said.
"Our population will continue to grow old, Singaporeans will need support to care for their loved ones.In the meantime, Singapore's approach to financing infrastructure investments is to save and to set aside funds through initiatives such as the Rail Infrastructure Fund, noted Mr. Wong
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OTHER BUSINESS
Mr. Singh attempted to tie prospect of canceling the RSS project at the announcement of the government raise the GST.
SECOND MINISTER OF FINANCE LAWRENCE WONG, responding to what the leader of the Party of Workers Pritam Singh
Mr. Singh then asked if the Ministry of Finance would consider lowering the net returns of investments.NIRC contribution to the government budget if the HSR is scrapped.NIRC allows that up to the end of the year. at half of dreams Naked long-term interests expected from reserves are used in the budget each year.
million. Wong replied, "Again, I think Mr. Singh is trying to connect things that clearly have no relationship."
He reiterated that infrastructure projects such as the HSR are separately financed by loans, claiming that it helps to "smooth out the expenditures of these projects over a longer period to better match the benefits of the projects."
Another issue that he refuted concerned the accounts of PUB. Mr. Liang Eng Hwa (Holland-Bukit Timah RCMP) had asked for clarification on the capital reserve of the National Water Agency
following a video posted by the Workers Party (WP) on her Facebook page in which she noted that the stock of capital has risen from $ 3 billion to $ 5.3 billion over the past decade, and Mr. Singh also raised the issue in a speech to Parliament in May
Mr. Wong said that the interpretation of the capital reserve by WP as "treasury treasury" was "completely inaccurate, and demonstrates a fundamental misunderstanding of accounting principles"
Most of the funds are already invested in tangible assets. This includes modernization of water facilities, expansion of water treatment plants and investment in water treatment – "significant investments to ensure a safe and sustainable water supply for Singapore".
million. Wong also said that it was not enough to cover the agency's investments in infrastructure, and he had to borrow on the capital markets, and will continue to do so.
"In short, there is no excess cash in the PUB to link the increase in the price of water to the capital reserve of the PUB because it does not. there is absolutely no reason to do so, "he added." I hope this clarification will restore the facts and hope that the Workers' Party will refrain from distorting the facts for deceive the public. "
Mr. Wong said that he hoped that WP would post his answer on his Facebook page to correct the record.
In a Facebook post last night, Mr. Singh acknowledged that the video and the text of the WP "give the impression that the PUB shows a surplus of 5.3 billion dollars." He added that he had asked for the resignation of the video, given the clarification of Mr. Wong He also shared a video of the exchange in Parliament
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