Govt Raiding The Reserve

[makapaaa]

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Coffeeshop Chit Chat - Govt Raiding The Reserve</TD><TD id=msgunetc noWrap align=right>

Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">SGNEWSALTE <NOBR></NOBR> </TD><TD class=msgDate noWrap align=right width="30%">Jan-17 11:12 pm </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 8) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>5464.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>The govt is going to raid the reserve to fund vote-buying in the coming election.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_327784.html

Govt may tap reserves <!--10 min-->
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR></TR><TR></TR><TR><TD><!-- headline one : start --></TD></TR><TR></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- Author --></TD></TR><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Jeremy Au Yong </TD></TR><TR><TD><!-- show image if available --></TD></TR></TBODY></TABLE><!-- START OF : div id="storytext"-->THE Government is considering dipping into its reserves to help tide Singaporeans through the economic downturn. Senior Minister Goh Chok Tong revealed on Sunday morning that the Prime Minister and Finance Minister are mulling over the possibility of dipping into the reserves to pay for some of the measures in next week's Budget.
Speaking to reporters after giving out hongbaos to the low income in his Marine Parade constituency, he said: 'The issue which the Prime Minister and the Minister of Finance is now thinking over, is whether we should go to President, and ask him for approval to use the reserves for extraordinary measures.'
'It's a difficult decision because once you do that, you may open the reserves for future demands, which may not justify the use of reserves,' he added.
A move to tap into the country's sacrosanct rainy-day savings marks just how seriously the Government views the current downturn.
SM Goh pointed out, however, that these were 'exceptional times'.
'There must be exceptional measures for exceptional times,' he said.
'The weather is so bad, and we've always said the reserves are for a rainy day. If this is not a rainy day, I don't know what is a rainy day,' he said.
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[DerekLeung]

The govt is going to raid the reserve to fund vote-buying in the coming election.

 

[Einfield]

What is worrying, is the very real possibility of digging into the reserve to cover the many lobang and losses that they can't hide anymore.

But on the surface, they want to make it look like digging in to the reserve to help people.

All who have the key to the reserves and the person who have the authority to allocate and distribute them are all Dirty Harry's merry man.

 

[scroobal]

What is worrying, is the very real possibility of digging into the reserve to cover the many lobang and losses that they can't hide anymore.

But on the surface, they want to make it look like digging in to the reserve to help people.

All who have the key to the reserves and the person who have the authority to allocate and distribute them are all Dirty Harry's merry man.

Spot on.
About 3 months they mentioned in parliament that Temasek will no longer need to turn over its profit on a regular basis. Now this.

 

[Zeitgeist]

Spot on.
About 3 months they mentioned in parliament that Temasek will no longer need to turn over its profit on a regular basis. Now this.

Issues regarding reserves, better read this.................



http://www.singapore-window.org/sw00/000310a3.htm

 

[tonychat]

Minister of Finance is now thinking over, is whether we should go to President, and ask him for approval to use the reserves for extraordinary measures.

This is the greatest joke of all. Stop all the act lah. The only approval is from your sinkie LKY.

 

[lockeliberal]

Dear Scroobal

Honestly the reserves are held in both GIC Temasek and MAS by definition. You can't hide losses in one portion by raiding another, they are all part of the same kitty bank. If warren buffet is down 30% you can be sure the values have for all of GIC Temasek and MAS have dropped by that at the very minimum. That is even assuming some were bought at a very early date and have been held for like twenty years.

They can and will I believe liquidate the cash assets or near cash assets equivalent or print money via mas vis sa vis using the cash or near cash assets. I can' blame them for using it in this manner because as GCT said if this is not a rainy day I have no idea what is.


Locke

 

[splintuh]

This is the greatest joke of all. Stop all the act lah. The only approval is from your sinkie LKY.

it's just an expensive muppet show, and we've all got front row seats.

 

[tonychat]

Lock, use your lock to lock the reserve lah, so those evil minister will not get hold of it.

 

[myfoot123]

Being the largest employer and mass recruitment of civil servants in recent months, the govt has to feed the civil servants but there is not enough tax collected and all the monies were gambled away by temasick and GI.see. No choice but to dig into the reserve and don't forget some top civil servants need to take weeks of leave for cooking lesson too.

 

[PAPsupporter]

Our great PAP government will only use a very small portion from the reserves wisely to help the needy during the rainy days.

 

[goldenmonkey]

This is the greatest joke of all. Stop all the act lah. The only approval is from your sinkie LKY.

If our dearest prez would to veto that, I vow to eat prata for every meal. Of course I am allow to vary between having it modified with cheese, paper-styled, onion, eggs ....

 

[scroobal]

Dear Scroobal

Honestly the reserves are held in both GIC Temasek and MAS by definition. You can't hide losses in one portion by raiding another, they are all part of the same kitty bank. If warren buffet is down 30% you can be sure the values have for all of GIC Temasek and MAS have dropped by that at the very minimum. That is even assuming some were bought at a very early date and have been held for like twenty years.

They can and will I believe liquidate the cash assets or near cash assets equivalent or print money via mas vis sa vis using the cash or near cash assets. I can' blame them for using it in this manner because as GCT said if this is not a rainy day I have no idea what is.


Locke

Actually I was not talking about reserve principal. Part of the proceeds(management fee, consultancy fee, or profits or whatever you call it ) are pumped into the consolidated fund based on a formula and it comes from both Temasek and GIC. Some months ago, parliament was asked to unhitch the Temasek contribution.

Consolidated fund is where the surplus proceeds from all govt activities including private and public ventures go into. Up to the 80s, the biggest contributor was PUB by a large margin.

That fund and the usual tax revenue streams in the main drives the budget.

Reserves are just that - to be tapped on a rainy day.

But lets have the stats, the waterfall diagram, the piecharts, etc and show where the gap in funding occurred. Press has just plainly stated that it is right that reserves are used on a rainy day. Thats bleeding obvious isn't it. Its no different to a moron of a coach from football telling me that the ball is round when I asked why the team lost.

The moment I read that Temasek will be unhitched, I expected one MP to ask who will cover the gap or will there be a gap - no one did.

This is typical of this Govt. They broke this sensitive issue in 3 pieces
1) The cash injection of $100M into Temasek (mentioned in parliament about 4 mths ago)
2) Unhitch Temasek's contribution which has not been done since inception (mentioned about 2 mths ago in parliament again)
3) Now the tapping of the reserves (yesterday)

Obviously the PAP is well aware that Singaporeans can't complete the puzzle.

I bet you my bottom dollar that no gap will be identified except that from taxed revene such as income, property, car duties, ERP, GST and the likes.

Now you know why bloggers in Singapore except for Alex Au, will blog the obvious and miss an entire 3 tonner going by.

Welcome to Singapore Politics.

 

[2lanu]

Speaking to reporters after giving out hongbaos to the low income in his Marine Parade constituency, he said: 'The issue which the Prime Minister and the Minister of Finance is now thinking over, is whether we should go to President, and ask him for approval to use the reserves for extraordinary measures.'

Saying ask is just a formality. Behind it, they just tell Prata Nathan and he just nod his head.

The downturn is a good time to flush out FT and PR. Also put all those stupid high priced item to order.

GST 7% - Cut
Transport - Cut
Ciggie tax - Cut
Rental - Cut

Bring the economy lower to compete with developing countries.

 

[johnny333]

The downturn is a good time to flush out FT and PR. Also put all those stupid high priced item to order.
GST 7% - Cut
Transport - Cut
Ciggie tax - Cut
Rental - Cut
Bring the economy lower to compete with developing countries.

As long as the PAP controls the 'SYSTEM' theres no limit to their greed. This recession is just a tiny bump in their relentless price increases.

If you want "REAL" change Just vote for opposition & you'll see PAPs change of heart.

 

[2lanu]

As long as the PAP controls the 'SYSTEM' theres no limit to their greed. This recession is just a tiny bump in their relentless price increases.

If you want "REAL" change Just vote for opposition & you'll see PAPs change of heart.

You call this coming recession little bump?

 

[Einfield]

Actually I was not talking about reserve principal. Part of the proceeds(management fee, consultancy fee, or profits or whatever you call it ) are pumped into the consolidated fund based on a formula and it comes from both Temasek and GIC. Some months ago, parliament was asked to unhitch the Temasek contribution.

Consolidated fund is where the surplus proceeds from all govt activities including private and public ventures go into. Up to the 80s, the biggest contributor was PUB by a large margin.

That fund and the usual tax revenue streams in the main drives the budget.

Reserves are just that - to be tapped on a rainy day.

But lets have the stats, the waterfall diagram, the piecharts, etc and show where the gap in funding occurred. Press has just plainly stated that it is right that reserves are used on a rainy day. Thats bleeding obvious isn't it. Its no different to a moron of a coach from football telling me that the ball is round when I asked why the team lost.

The moment I read that Temasek will be unhitched, I expected one MP to ask who will cover the gap or will there be a gap - no one did.

This is typical of this Govt. They broke this sensitive issue in 3 pieces
1) The cash injection of $100M into Temasek (mentioned in parliament about 4 mths ago)
2) Unhitch Temasek's contribution which has not been done since inception (mentioned about 2 mths ago in parliament again)
3) Now the tapping of the reserves (yesterday)

Obviously the PAP is well aware that Singaporeans can't complete the puzzle.

I bet you my bottom dollar that no gap will be identified except that from taxed revene such as income, property, car duties, ERP, GST and the likes.

Now you know why bloggers in Singapore except for Alex Au, will blog the obvious and miss an entire 3 tonner going by.

Welcome to Singapore Politics.

Sharp Observation, layman in the street have no clue what the implications are, that is why Dirty Harry can rule for so long, any one who are smart enough already brought over by him systematically, through various government scholarship scheme to serve his cause.

 

[lockeliberal]

Dear Scroobal

The consolidated fund is the main current account for the Fiance Ministry. All tax revenues, contributions of 20% of profit from stat board, GIC MAS and Temasek, CPF Bond sale proceeds, Gov debt sales etc all go into the consolidated fund.

From there the quarterly dispersions to ministries for their projects and expenditure are given. In view of the lag in the expenditure of public money, the consolidated fund as the central current account can be substantial. For example xxx ministry allocated xxx amount for a project which stretches over three years.

The lack of clarity in how the reserves are spent is due to the deliberately vague language about the usage of the reserves. The quantum remains up to 50% can be used as net investment income without ever declaring how much of that limit was used.
The recent debate in parliament was I believe an amendment not only to spend the interest or dividend income, but also to be able to spend the capital gains whilst protecting principle.

With regards to Temasek and why GIC was not covered by the amendments it was due to the losses they have suffered and according to Hansard for Oct 2008 they are already down 7% on the year with an injection of 10 billion.



Locke

 

[johnny333]

You call this coming recession little bump?

Ehh, from their ivory towers it is only a bump lah

When you have platinum rice bowl & million dollar salaries only have to worry about 'fixing' things every 3 to 4 years

 

[johnny333]

The govt is going to raid the reserve to fund vote-buying in the coming election.

More signs that an election is comming. Expect more 'PAP cares' news