The Reilience Budget DECEPTION. Another classic PAP Hogwash.

[Dan Now]

Dear Friends,

An invitation first to read thru the following article. A necessary recap and snapshot of LAST year budget first.

Cheers.

GST hike, Budget surplus and rising costs

<SCRIPT src="http://s.wordpress.com/wp-content/plugins/adverts/adsense.js?1" type=text/javascript></SCRIPT>LAST year’s huge Budget surplus of $6.45 billion is causing some economists and MPs to question the timing of last July’s hike in the goods and services tax (GST).

The issue came up for debate when a taxi driver, two MPs, two economists and a businessman met at The Straits Times on Thursday for a roundtable discussion on Budget 2008.

Rising costs for individuals and businesses remain their top concern.

Citigroup economist Kit Wei Zheng pointed out that some of the cost increases are within the Government’s control.
He cited the GST hike and the increases in Electronic Road Pricing charges due to start in April.

‘There’s a question of why all these price increases are coming at a time when the inflation rate is already very high and continues to rise,’ he said.

But MP Inderjit Singh countered Mr Kit’s point that the GST should have been raised in two steps, not one.

That would have opened the door for businesses to raise prices not once, but twice, possibly causing more hardship to consumers, Mr Singh said.

The six panellists also tackled the issue of a widening income gap and whether regular Budget handouts would breed a ’subsidy mentality’ among Singaporeans.

Businessman Zulkifli Baharudin said: ‘It’s good to give but I hope down the line, we do not create a mentality that Budget time is just about hongbao.’
Insight reports on their frank exchange of views on the Government’s financial policy.

Source: The Straits Times 23 Feb 08


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[Dan Now]

Here is an article from today's Wall Street Journal. An analysis.

By P.R. VENKAT

SINGAPORE -- Singapore, facing its worst recession on record as the global slowdown batters the trade-dependent city-state, will tap its official reserves for the first time to help fund a record 20.5 billion Singapore dollar (US$13.7 billion) stimulus package.
"The government will implement a major fiscal package in response to this crisis," Finance Minister Tharman Shanmugaratnam said Thursday. "We are likely to experience the deepest recession in the Singapore economy since our independence [in 1965], arising from the worst global economic decline in 60 years."

Announcing the "resilience package" in a budget speech to Parliament, Mr. Tharman said the government aims to use S$4.9 billion from its reserves. This allows the government to avoid issuing debt to finance the increased spending.
Analysts said the stimulus package, which includes a small but unexpected cut in the corporate tax rate, to 17% from 18%, was bigger than anticipated. But they predicted the government may have to do more as the export-reliant economy swoons.
Indeed, Mr. Tharman acknowledged "there is no guarantee that there will be a recovery in 2010."

The government's fiscal support can only "help avert an even sharper downturn and more lasting damage to the economy," the minister said. "We remain ready to undertake further measures if necessary over the course of the year and the next few years."
The announcement came a day after the government forecast the economy could contract as much as 5% this year. Gross domestic product plunged at an annual rate of 16.9% in the fourth quarter from the previous three months -- the worst since the Singapore began releasing seasonally adjusted data in 1976.

Singapore financial markets gave a muted reaction to the Thursday afternoon announcement.
The package comprises S$5.8 billion to spur bank lending, S$5.1 billion to help save jobs, S$2.6 billion in tax measures and grants to help businesses, S$4.4 billion in infrastructure spending, and S$2.6 billion to help households.
With the additional spending, Singapore's overall budget deficit, estimated at S$2.2 billion this fiscal year, would be on course to swell to S$14.9 billion, or 6% of gross domestic product, for the fiscal year that starts in April, Mr. Tharman said. But largely due to the reserves drawdown, next fiscal year's shortfall will be S$8.7 billion, or 3.5% of GDP, he said.

"This is the type of severe contingency that our reserves are accumulated for and justifies a draw from past reserves," Mr. Tharman said. Singapore's foreign reserves amounted to US$174 billion at the end of December. The Government of Singapore Investment Corp., the city-state's sovereign-wealth fund known as GIC, also manages around US$150 billion in reserves.
Until Thursday, Singapore had trailed many other Asian countries in announcing steps aimed at spurring the economy, "but I think the fact that something significant and sizable has been announced has to be a good sign," said Citigroup economist Kit Wei Zheng. "It's a good thing that they're acknowledging the gravity of the situation; this is a big-bang budget, unprecedented measures for unprecedented times."
CIMB-GK economist Song Seng Wun said that while the overall package "might look fairly sizable from the headline," it's "too focused in terms of targeting specific areas, rather than taking a helicopter approach of helping everyone in this kind of a worst-case scenario of a 5% contraction."
<CITE class=tagline></CITE>
<CITE class=tagline>—Se Young Lee, Patricia Kowsmann and Costas Paris contributed to this article.</CITE> Write to P.R. Venkat at [email protected]
<!-- article end -->

 

[Man in the streets]

so much of cock talking.

nothing has reached the ground, and those small monies that can reach the ground are mint dust that eventually have to return to the mint.

what a bankrupt measures.

 

[Dan Now]

Dear Friends,

This is how the PAPies have always been playing with numbers to make themselves look good.

Last year Surplus after the Various GST and price hikes is 6.45 Billion.

Now the PAPies is saying it is readying a 20.5 billion budget to bless us so that we will shall be forever grateful to their godly graces.

As usual the devil is ALWAYS in the details.

This year budget Tharman the Condor God, is very generously drawing 4.9 billion from our reserves to Help us.

RIGHT.

That 4.9 BILLION is NOT EVEN CLOSE to the 6.45 Billion that our Mighty Cheng Hu fleece from us last year thru the various price hikes and GST increase from last year !

MOREOVER, the BUDGET makes no stipulation that ONLY SINGAPOREAN CITIZENS are eligible for the package.

PRs and Foreigners MUST NEVER be eligible or benefit from the withdrawing of our reserve SIMPLY because it is MORALLY absurd to do so.

Dan

 

[Dan Now]

so much of cock talking.

nothing has reached the ground, and those small monies that can reach the ground are mint dust that eventually have to return to the mint.

what a bankrupt measures.

Well said,

Our civil service and god ministry will first SPIT upon us Singaporeans first and say we have dependency crutch mentality before they EVEN show you the MOUNTAINS of forms you have to filled up to begin to smell the aid package.

If you take it, then ALL sorts of name calling will be LAMBASTED at us. This is the OPPORTUNITY the PAPies is looking for to PUT down and demonise our citizens again.

That we are GOOD FOR NOTHING, Kiasu, Kiasee, IGNORANT, Stupid, Choosey, abusive tags will rain down on us because our PAP DEMIGODs and their minions have always consider as us good for nothing, ever complaining citizens.

Just you wait. The INSLUTS from the PAP DOGS in the 154 media will then create news and writers to say Singaporeans in such bad times, should not be complacent and we should be thankful BLAH BLAH BLAH.

We will be abuse, scolded and Singaporeans will be encourage to bash one another no end again.

Dan

 

[funglung]

Dear Friends,

This is how the PAPies have always been playing with numbers to make themselves look good.

Last year Surplus after the Various GST and price hikes is 6.45 Billion.

Now the PAPies is saying it is readying a 20.5 billion budget to bless us so that we will shall be forever grateful to their godly graces.

As usual the devil is ALWAYS in the details.

This year budget Tharman the Condor God, is very generously drawing 4.9 billion from our reserves to Help us.

RIGHT.

That 4.9 BILLION is NOT EVEN CLOSE to the 6.45 Billion that our Mighty Cheng Hu fleece from us last year thru the various price hikes and GST increase from last year !

MOREOVER, the BUDGET makes no stipulation that ONLY SINGAPOREAN CITIZENS are eligible for the package.

PRs and Foreigners MUST NEVER be eligible or benefit from the withdrawing of our reserve SIMPLY because it is MORALLY absurd to do so.

Dan

Sinkies got what they fucking deserved for voting and voting in LKY and his bastards in white even when knowing that LKY only want to suck and suck the money and future of Sinkies .

The extent of sucking is only partly revealed by the 'surplus' in budget.
What go on in those accounting no one really knows.

Sinkies deserved the screwing by LKY as they willingly opened their legs to him.

LET THE FUCKING ON SINGKIES BE GOOD AND SOLID.

SINKIES WHO VOTED FOR LKY CAN WATCH THEIR SONS AND DAUGHTERS BE SCREWED IN TANDEM AS WELL.

THOSE SINKIES WHO DID NOT VOTE FOR LKY, THIS IS COLLECTIVE PUNISHMENT AS YOU DID NOT DO YOUR BEST IN GETTING ENOUGH FELLOW SINKIES TO VOTE OUT LKY AND HIS BASTARDS IN WHITE

 

[Dan Now]

Bro,

I understand your anger and your fraustrations perfectly.

Still, for our children's sake, we must continue to wake more Singaporeans up from their PAP induced slumber of never never land.

And to be honest, I am at a lost for words of comfort and encouragement.

If there is some respite, you can be sure that there are a multitude of us out there taking the knocks everyday from the marginalising policies of the PAPies.

The day will come, and change is inevitable. Nurse a little hope that things might change.

Dan

 

[lockeliberal]

Dear Dan

Hi having looked at the budget estimates and in particular for both 2008 and for 2009. What is obvious is that whatever surplus from 2007 and whatever has been created from the GST Hike has been used to plug the shortfall in revenue as the economy slows and the tax cuts come in. Spending in the basic budget despite the drop in revenue has actually increased by 10%. Revenues or collections have been estimated to drop by 17% and in view of the current economic climate I expect it to be worse than projected.




Cheers


Locke

Dear Friends,

This is how the PAPies have always been playing with numbers to make themselves look good.

Last year Surplus after the Various GST and price hikes is 6.45 Billion.

Now the PAPies is saying it is readying a 20.5 billion budget to bless us so that we will shall be forever grateful to their godly graces.

As usual the devil is ALWAYS in the details.

This year budget Tharman the Condor God, is very generously drawing 4.9 billion from our reserves to Help us.

RIGHT.

That 4.9 BILLION is NOT EVEN CLOSE to the 6.45 Billion that our Mighty Cheng Hu fleece from us last year thru the various price hikes and GST increase from last year !

MOREOVER, the BUDGET makes no stipulation that ONLY SINGAPOREAN CITIZENS are eligible for the package.

PRs and Foreigners MUST NEVER be eligible or benefit from the withdrawing of our reserve SIMPLY because it is MORALLY absurd to do so.

Dan

 

[Dan Now]

Dear Dan

Hi having looked at the budget estimates and in particular for both 2008 and for 2009. What is obvious is that whatever surplus from 2007 and whatever has been created from the GST Hike has been used to plug the shortfall in revenue as the economy slows and the tax cuts come in. Spending in the basic budget despite the drop in revenue has actually increased by 10%. Revenues or collections have been estimated to drop by 17% and in view of the current economic climate I expect it to be worse than projected.




Cheers


Locke

So ?

Why didn't you write in to the STATE TIMES and have your letter publish and give your praise to our Gods.

You have forgoten ONE IMPORTANT fact in your whole humbug equation. 7 percent GST and its full effects still exist. So despite all the Aid infusion, the return back to the coffers of 7 percent ( plus the multiplier effect ) exist.

And that the SUDDEN inflow of capital from the Cheng Hu to help big business FIRST might cause a SPIKE in inflation making consumables more expensive and Making the lives of lower income group POORER.

Dan

 

[lockeliberal]

Dear Dan

Due to the offsetting nature of GST transactions there is no multiplier effect for GST. Historically as an economy shrinks so does GST collection. Singapore has no reason not to follow that economic rule.

The declining oil prices and slowing economy would remove inflationary pressure Singapore. The risk here is less of inflation then of a full blown depression. In fact a little inflationary policy is what is needed at the moment.



Locke

 

[Dan Now]

Dear Dan

Due to the offsetting nature of GST transactions there is no multiplier effect for GST. Historically as an economy shrinks so does GST collection. Singapore has no reason not to follow that economic rule.

The declining oil prices and slowing economy would remove inflationary pressure Singapore. The risk here is less of inflation then of a full blown depression. In fact a little inflationary policy is what is needed at the moment.



Locke

NO MULTIPLIER EFFECT OF THE GST ?

LOL. Eh please la. Don't talk cock and embarass yourself.

What economic rule you talking about ? Don't spill crap here and then expect the readers here to mop it up for you later. Trying to muddy the waters again issit ?

Eh just for the readers reference, are you still in WP now or PAP ?

And for your retarded info, We are already in a full blown depression and PRICES of consumables are still climbing.

Since you raise the issue, tell us what DO YOU MEAN by the Offesetting of the GST effect ? Have the CURRENT budget OFFEST any GST ?

Please la Locke. Want to carry balls, you can always do it at the PAP youth forum. Try stunts here, you will be smack

Dan

 

[commoner]

The Government is still the biggest employer, so the worker benefits majority goes back to them.

The Government is the biggest landlord, so property tax benefits themselves.

SMEs? Still have alot of SMEs meh? NTUC and GLCs bao tau bao pueh, so loans to who? Still go through GLC banks.

 

[Dan Now]

The Government is still the biggest employer, so the worker benefits majority goes back to them.

The Government is the biggest landlord, so property tax benefits themselves.

SMEs? Still have alot of SMEs meh? NTUC and GLCs bao tau bao pueh, so loans to who? Still go through GLC banks.

Well said.

The irony of all this measures are that PRs and the FTs stands to gain the most as alot of these leeches are benefiting from all kinds of schemes which the government have given to them to replace us.

Dan

 

[commoner]

What REsimi package?

Yesterday issue package, stock market still can move abit.

Today, SGX drop a 22 points, looks like the business world also not so excited about the budget.

 

[Dan Now]

What REsimi package?

Yesterday issue package, stock market still can move abit.

Today, SGX drop a 22 points, looks like the business world also not so excited about the budget.

Excellent points bro.

This package will not stimulate consumption.

The PAPies Pompous deceitful ways are truly world class. ALL they have to do is to reduce GST to 3 percent or do away with it altogether and then spend the 6 billion surplus last year to help move the economy.

This will in fact lower the cost of OPERATIONS and Factors of production for the business owners and also help make Singapore competitive as compared to HK who does not have GST.

The dipping into the reserve is a LOAD of BULL. Last year surplus of 6 over billion is this year "aid".

KNN how low can the PAPies get.

Dan

 

[lockeliberal]

Dear Dan

No need to seeing as you are the one making sweeping claims based on half baked economic truths and unsubstantiated statements. I am all for discussing about the budget and on certain issues I do have my questions but that is a far cry from someone claiming that the world is still flat.

Prices will fall and will continue to fall, the basis for inflationary pressure has gone out of the window and the greater problem is now a depression. In my view a healthy inflationary spiral would do us a lot of good right now.

Prices have not fallen yet but they will but all leading economic indicators signal a slowing economy, slowing wage inflation, lower oil prices etc etc all in all lower prices.

The situation at hand is serious and a serious discussion is merited not some pea brained attempt at rhetoric.

The offsetting remark was in reply to your statement about the multiplier effect of GST. There is no additional multiplier effect from GST in terms of tax collection accept from what has been reflected in the budget. A slowing shrinking economy means lower GST collections, hence the fall in projected revenue and increase in deficit as spending is maintained.



Locke




ou have forgoten ONE IMPORTANT fact in your whole humbug equation. 7 percent GST and its full effects still exist. So despite all the Aid infusion, the return back to the coffers of 7 percent ( plus the multiplier effect ) exist.

NO MULTIPLIER EFFECT OF THE GST ?

LOL. Eh please la. Don't talk cock and embarass yourself.

What economic rule you talking about ? Don't spill crap here and then expect the readers here to mop it up for you later. Trying to muddy the waters again issit ?

Eh just for the readers reference, are you still in WP now or PAP ?

And for your retarded info, We are already in a full blown depression and PRICES of consumables are still climbing.

Since you raise the issue, tell us what DO YOU MEAN by the Offesetting of the GST effect ? Have the CURRENT budget OFFEST any GST ?

Please la Locke. Want to carry balls, you can always do it at the PAP youth forum. Try stunts here, you will be smack

Dan

 

[Qinhuang]

hi dan,

all the bullshits to make voters stupid.

in april, we will see whether SAF is still riding on the 10 billion bill and the R&D is blowing on the 9 billion expenses during the downturn.

as long as the PAP machinery is too expensive to sustain, it is the local people who will suffer. You see why they betting on the gambling dens.

Dan, overpriced HDB flats supposed to be an affordable lease shelter but now become a PAP commodity. They call this good inflation ? Hahaha....voters really get fucked and fucked again, but yet still stupidity vote for PAP.

Lets hope great depression come and all hell let loose to rid the devils.

cheers

 

[ahbengsong]

That we are GOOD FOR NOTHING, Kiasu, Kiasee, IGNORANT, Stupid, Choosey, abusive tags will rain down on us
[unquote]

sinkees deserve it...

 

[ahbengsong]

Sinkies got what they fucking deserved for voting and voting in LKY and his bastards in white even when knowing that LKY only want to suck and suck the money and future of Sinkies .
The extent of sucking is only partly revealed by the 'surplus' in budget.
What go on in those accounting no one really knows.
Sinkies deserved the screwing by LKY as they willingly opened their legs to him.
LET THE FUCKING ON SINGKIES BE GOOD AND SOLID.
SINKIES WHO VOTED FOR LKY CAN WATCH THEIR SONS AND DAUGHTERS BE SCREWED IN TANDEM AS WELL.
THOSE SINKIES WHO DID NOT VOTE FOR LKY, THIS IS COLLECTIVE PUNISHMENT AS YOU DID NOT DO YOUR BEST IN GETTING ENOUGH FELLOW SINKIES TO VOTE OUT LKY AND HIS BASTARDS IN WHITE

... the 33% are the 'collateral damage'...

 

[ahbengsong]

Dear Dan... the budget are just general statements which have no credibility... till one sees the real benefits at ground level... just take the pap budget as a lame tale...