[ad_1]
SINGAPORE: With independent audits from the Auditor General’s Office and parliamentary scrutiny of government spending, an independent Budget office would be a “useless duplication of these functions,” Deputy Prime Minister Heng Swee Keat said on Friday (February 26).
He responded to leading opposition MP Pritam Singh (WP-Aljunied), who on Wednesday proposed an independent budget office to examine the government budget and ensure “public accountability and transparency in light of the massive reduction in reserves. “to fight COVID-19.
Heng said information on the results of last year’s budget measures has been released, referring to the interim report released by the Finance Ministry earlier this month.
Singapore will use its past reserves for the second year in a row to cushion the impact of the COVID-19 pandemic. The total amount that the Government expects to extract from reserves will increase by S $ 1.7 billion, totaling up to S $ 53.7 billion for FY2020 and FY2021. This is because the S $ 52 billion fenced off the last year for the crisis will not be fully used, Heng said in his budget speech last week.
The Government expects to use S $ 42.7 billion of the S $ 52 billion for fiscal year 2020, leading to a balance of S $ 9.3 billion.
“I am glad that Mr. Singh agrees with the need to be prudent and responsible in our expenses. And indeed, it would be very helpful if every time Mr. Singh or his colleagues ask the government to spend more, they give us their estimates of how much it will cost and how they will finance it, ”Heng said in his budget summary. Friday speech.
“But instead, the Workers’ Party has asked the government to spend S $ 20 million to establish an independent parliamentary budget office to do this work for them, even as they ask for greater scrutiny of government spending.”
READ: ‘Unwelcome’ gas tariff hike with EVs not yet a viable option, says Pritam Singh
When Singh asked Heng where he got the sum of 20 million Singapore dollars, Heng said it was from MP Jamus Lim (WP-Sengkang). Associate Professor Lim clarified that it was for the next debate of the supply committee of the Ministry of Finance.
Singh said that the Finance Ministry supply committee debate had not started at that time and that the figure of Assoc Prof Lim should not be part of this debate.
The head of WP said that such an office, although quite new, is not unusual. These institutions are not destined to help the Opposition, but to all the deputies and are “in accordance with the scheme of separation of powers”.
Singh cited an incident when he was part of the parliamentary estimates committee, of which MPs are a part, a few years ago.
“A senior official said ‘I can’t be smarter than my boss,'” he said. “Who is your boss? His boss is the Minister of Finance. “
“So a budget office or parliament official is there to provide an independent analysis to confirm the nature of the Budget, to confirm that the programs are delivering the desired results,” Singh continued.
Singh asked how the S $ 24 billion set aside for business and worker transformation will be used over the next three years, the results of the Skills Transformation Program, and whether subsidies to private rental bus drivers will be extended to as they have been affected. due to the lack of tourists.
READ: Budget 2021: S $ 24 billion to transform companies and workers in the next three years
Before Heng responded, House Leader and Prime Minister’s Office Minister Indranee Rajah asked Mr. Singh to clarify the purpose of the Budget office and whether it is the same as the independent fiscal council on the Associate Professor Lim had asked.
Initially, Singh said that it was not the same proposal and that the House should wait for Assoc Prof Lim to deliver its part. But when Ms. Rajah asked again if the Budget office and the fiscal council are the same or separate, Singh said it will be “the same”.
In response, Heng said he was “totally confused” as they are “very different entities.”
“Mr Singh said earlier that we should establish such an office because it is important to look at the results. He had a meeting with a Finance Ministry official who said, ‘I’m not smarter than my boss,’ ”Heng said.
“Your arguments are totally complicated. One does not lead to the other. ”
Mr. Heng asked if Mr. Singh and the members of the Working Group had read the evaluation report on the budgetary measures.
“There is a reason why I submitted the interim report although not all effects have been made, because I am aware that we have used a large part of the budget last year … we have used past reserves, and that we have a responsibility to account for those results, “said Mr. Heng.
He also argued that no one questioned the outcome of the measures.
“So what is the purpose of establishing an office when information that is publicly available is there for you to ask?” Heng said.
Mr. Singh responded that the recommendation for a budget office is a question about state organs and separate from the question of results.
WATCH: 2021 budget debate: Heng Swee Keat responds to clarifications requested by MPs
The Budget office will offer an independent perspective and assist Parliament that is going to approve the Budget, Singh said.
“Those who are approving the Budget should have, I think, access to independent analysis,” he said.
Heng responded by saying that he did not want to “prolong the debate” and that they could discuss this in the supply discussion committee of the finance ministry, while specific issues may be raised in the supply committee discussions of the relevant ministries.
Mr. Heng added that the budget debate is whether “our general direction is correct.” He asked if Mr. Singh had any suggestions on how they can do better because so far he has not received any.
Singh said he would ask his questions on specific topics in the supply discussion committee.
INCOME FROM SALE OF LAND
After the Singh and Heng exchange, MP Louis Chua (WP-Sengkang) asked how the country’s surplus cash is generated in addition to government land sales.
He calculated that Singapore has a cash surplus of S $ 29 billion a year, of which S $ 15 billion comes from income from land sales, and asked where the other S $ 14 billion comes from.
“The incentives to use the sale of land as a means to increase income, I think it is something that is already done indirectly, and that is why it is already underway although to a different extent. I think the broader point that I also like to share, I think in the context of Singapore, I think that when it comes to land sales, it’s something that I think is a recurring source of revenue for the government as well, ”Chua said. . .
He also asked how long it will take Singapore to replenish its reserves and where their current levels are compared to five or ten years ago.
Mr. Heng asked Mr. Chua to “retract” his claim that the government uses the sale of land to meet its revenue targets.
“When we do land sales, it is to meet the needs of our people, of our economy,” Heng said.
“I totally reject your claim that the government has an incentive to sell more land to generate income. If the government had the incentive, it would not have pointed out the problem,” he added.
“In many countries, and I studied it in many countries, where unfortunately the government, especially the local government, is so dependent on the sale of land that they have a vested interest in keeping land prices high because they needed the income and in turn Once, that creates a lot of difficulties for people.
“Therefore, our system cannot incentivize. And the URA has long-term plans, 50-year plans, 20-year plans, so land use planning has been a great strength of Singapore.
“So I think I should seriously look at what the agencies have been doing and not make accusations like this because I think it will demoralize the many good officers that we have in our planning department.”
WATCH: Heng Swee Keat Completes 2021 Budget Debate
Chua said he did not make an accusation, but to try to understand how Singapore generates its cash surplus.
Mr. Heng thanked Mr. Chua for withdrawing his claim, adding: “Our reserve protection framework has protected all the assets we have. You are simply converting an asset into another form of asset, and they are protected. ”
