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- Dec 30, 2010
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The Budgets over the past 50 years have made the effort to balance or even have a surplus seem effortless. Will this lull us into a false sense of security, thinking that money is easily available and that the suite of subsidies, grants, benefits, handouts and tax reliefs for individuals and businesses is part of the budgetary routine?
With the larger social spending each year, those who value fiscal prudence have cause to worry about whether we are on the slippery slope to fiscal irresponsibility, and with that, the eroding of a steadfast work ethic as well as personal and collective responsibility. It is sometimes a thin line between a popular and a populist Budget.
But the sharp accent on social spending is indicative of the Government playing catch-up for underinvestment in the social sector in the past, as well as the growing needs of an ageing society.
Instead, such public expenditure should be seen as social investment to provide stabilisation and social insurance against externally generated risks. It also sustains the physical, human and social capital necessary for growth. Public expenditure is thus not a mere expense, but an integral part of the productive economy and the cohesive society.
This Budget is evidently geared towards the broad swathe of Singaporeans, especially the sandwiched middle class. They are the largest beneficiaries. It has certainly generated a feel-good effect, not so much for the PAP government, but for the state of governance we have, and affirms what we expect of our leaders as stewards.
ABOUT THE AUTHOR:
Eugene KB Tan is associate professor of law at the Singapore Management University School of Law.
With the larger social spending each year, those who value fiscal prudence have cause to worry about whether we are on the slippery slope to fiscal irresponsibility, and with that, the eroding of a steadfast work ethic as well as personal and collective responsibility. It is sometimes a thin line between a popular and a populist Budget.
But the sharp accent on social spending is indicative of the Government playing catch-up for underinvestment in the social sector in the past, as well as the growing needs of an ageing society.
Instead, such public expenditure should be seen as social investment to provide stabilisation and social insurance against externally generated risks. It also sustains the physical, human and social capital necessary for growth. Public expenditure is thus not a mere expense, but an integral part of the productive economy and the cohesive society.
This Budget is evidently geared towards the broad swathe of Singaporeans, especially the sandwiched middle class. They are the largest beneficiaries. It has certainly generated a feel-good effect, not so much for the PAP government, but for the state of governance we have, and affirms what we expect of our leaders as stewards.
ABOUT THE AUTHOR:
Eugene KB Tan is associate professor of law at the Singapore Management University School of Law.
