Despite collecting a record S$43.4 billion in taxes from IRAS, the Singapore Government has overspent 2015’s Budget and goes into S$6.67 billion deficit. The main reason behind this deficit is overspending in Pioneer Generation Package (PGP), GST Vouchers, Wage Credit Scheme and Productivity and Innovation Credit (PIC) which totalled up S$5.57 billion.
Singapore’s tax authority the Inland Revenue Authority of Singapore collected the highest amount of taxes at S$43.4 billion in the latest financial year, FY14/15. This amount is S$1.8 billion higher (4.4% increase) than the previous year and the boost comes from the rapid increases in income tax (16% increase), corporate tax (5.4% increase), GST (7.4% increase) and gambling tax (8.9% increase) over the previous year. Total operating revenue will include the IRAS taxes, COE taxes, assets taxes, alcohol taxes and etc, will be at least S$64.27 billion as estimated in the earlier 2015 Budget.
However, despite the increase in total taxes collected, Singapore’s Budget for 2015 projected at S$68.22 billion remains overspent. Total taxes collected at S$64.27 billion will combine with Net Investment Returns Contribution (NIRC) at S$8.94 billion from the national reserves to support the 2015 Budget of S$68.22 billion.
After taking into account for the mandatory Top-ups to Endowment Funds and Trust Funds for 2015 at S$6 billion along with Special Transfers like Pioneer Generation Package, GST Vouchers, Wage Credit Scheme and Productivity and Innovation Credit (PIC) of S$5.57 billion, the Singapore Government will go into a deficit of at least S$6.67 billion.
Prime Minister Lee Hsien Loong has earlier warned of Opposition parties becoming a populist and incompetent government and bankrupting the country with irresponsible social spending. Unfortunately it appears now, that the populist and incompetent government today is the PAP, leading Singapore into budget deficit.