We need a vibrant economy to generate the resources to realise these cherished goals. And the government must have reliable and adequate revenues to carry out its social programmes. It needs to raise additional revenues to fund the expansion of our healthcare system and support schemes for older Singaporeans. Those who are better off should contribute a larger share, but everyone needs to shoulder at least a small part of the burden.
This is the rationale for raising a broad-based tax like the GST, coupled with a comprehensive scheme of offsets to cushion the impact on lower income households. The GST forms one important component of our system of taxes and transfers that also includes income and wealth taxes. Overall, our system will remain progressive and fair.
We have seen this need coming for some years. Now that our economy is emerging from COVID-19, we have to start moving on this. Budget 2022 will therefore lay the basis for sound and sustainable government finances for the next stage of Singapore’s development.
Throughout this pandemic, we have stood together, supported difficult decisions, made many sacrifices, and come through safely. We can confidently say that we have measured up as one people. In a crisis, everyone saw the need to make tough choices, and accepted hard policies for the common good. Looking ahead, confronted with longer term challenges, we must maintain the same unity of purpose, fortitude of spirit, and willingness to accept difficult measures, in order to overcome them decisively and keep on progressing together. This is how we will build a Singapore where everyone has a place and no one is left behind.
Let us stay united as one people and one Singapore – always looking ahead, securing our place in the world, and building an inclusive society that we can proudly call home.
I wish all Singaporeans a Happy New Year!
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