How the Pioneer fund is funded can simply be discovered through the revenue and expenditure statement:
http://www.singaporebudget.gov.sg/budget_2014/RevenueandExpenditure.aspx
Click on the "Topups Endowment and Trust Fund". This is where the $8B appeared.
Last year this item was $5.6B this year slight more $8+B.
Lets look at it:
Last year we have GST Vouchers of $3B but this year don't have,
Last year we have $1.8B more "topups to endowment".
Last year we have "cultural matching fund and youth" fund $0.27B but this year don't have.
$5B came from cut down in other optional spending. $2B came from surplus and $1B from deficit ...altogether $8B.
Most of the money came from Optional "one-off" spending that can be switch from one area to another. Last yr was GST voucher this year is "Pioneer Package". Next year they can maybe do "Youth Development Budget". ...etc. depending on what the govt wants to do.
How is this funded?
It is mostly money from NIR which Up to Half the returns of Temasek and GIC that is transferred to MoF. The usually transfer about $8B a year which looks like roughly 15-20% of the return....which is really a small fraction.
Basically the Pioneer Package is a small fraction of the returns Singaporeans have been deprived of from our CPF which is given to GIC/Temasek to invest i.e. The money is extracted first from wage earning ordinary Singaporeans through CPF then given back to them later. Rather than raised from corporate taxes and higher progressive income taxation.
Basically the Pioneer Package is funded by a small fraction of total money that should have been returned back to Singaporeans' CPF in the form of higher returns in the first place.
Normally such social spending is funded by taxation which is progressive with companies and rich individuals paying more. However, in Singapore, it is funded by Singaporean's "CPF deprived returns" money that should have gone back to CPF instead. The net result is the govt taxed everyone through CPF and kept taxes artificially low for businesses and rich individuals.
http://www.singaporebudget.gov.sg/budget_2014/RevenueandExpenditure.aspx
Click on the "Topups Endowment and Trust Fund". This is where the $8B appeared.
Last year this item was $5.6B this year slight more $8+B.
Lets look at it:
Last year we have GST Vouchers of $3B but this year don't have,
Last year we have $1.8B more "topups to endowment".
Last year we have "cultural matching fund and youth" fund $0.27B but this year don't have.
$5B came from cut down in other optional spending. $2B came from surplus and $1B from deficit ...altogether $8B.
Most of the money came from Optional "one-off" spending that can be switch from one area to another. Last yr was GST voucher this year is "Pioneer Package". Next year they can maybe do "Youth Development Budget". ...etc. depending on what the govt wants to do.
How is this funded?
It is mostly money from NIR which Up to Half the returns of Temasek and GIC that is transferred to MoF. The usually transfer about $8B a year which looks like roughly 15-20% of the return....which is really a small fraction.
Basically the Pioneer Package is a small fraction of the returns Singaporeans have been deprived of from our CPF which is given to GIC/Temasek to invest i.e. The money is extracted first from wage earning ordinary Singaporeans through CPF then given back to them later. Rather than raised from corporate taxes and higher progressive income taxation.
Basically the Pioneer Package is funded by a small fraction of total money that should have been returned back to Singaporeans' CPF in the form of higher returns in the first place.
Normally such social spending is funded by taxation which is progressive with companies and rich individuals paying more. However, in Singapore, it is funded by Singaporean's "CPF deprived returns" money that should have gone back to CPF instead. The net result is the govt taxed everyone through CPF and kept taxes artificially low for businesses and rich individuals.
Last edited:
