2013 BUDGET:
WAGE CREDIT SCHEME: The wage credit scheme is a way to address Prof Lim Chong Yah’s call to freeze the pay of management to narrow the income gap. It is a way to increase the pay of the lower income group by companies. Salary is capped at $4000 per month. Under the scheme, the Govt will foot 40% of the pay increase over the next 3 years.
WORKFARE INCOME SUPPLEMENT SCHEME: Raising the pay by $200 to a limit of $1900 per month will mean more people at the lower-income group will receive the 30% top-up of their wages from the Workfare Income Supplement scheme. It will continue to counter the hopes of those who advocate having a Minimum Wage policy, which if applied to FWs as well will defeat its purpose as it will only encourage more FWs wanting to come and work in red dot causing more resentment from the locals. WIS is paid to only Singaporeans for the benefit of Singaporeans, not the FWs.
GST REBATES: GST vouchers will be given double the amount this year to the lower-income Singaporeans, not to the FWs. The GST vouchers are rebates and it will continue to blunt and counter the hopes of those who advocate the call for GST to be abolished, or to have zero-rated GST on basic necessities, or to have a high GST rate on luxury or expensive branded items.
PRODUCTIVITY AND INNOVATION CREDIT [PIC] : Productivity increases with the PIC? First, teach and guide the bosses and supervisors what is true productivity. Fix the wastage first. It could be related to money, time and materials wastage. An unhappy staff will not work hard to help raise productivity. I wrote on this in my tankoktim at blog.com under Productivity category. In this category, I also wrote on: should employees decide their wages?
SOCIALIST IDEALS:
Quote: “Budget 2013 comes across as focused on addressing the 2011 General Election and post-election hot button issues — housing, transport, healthcare costs (particularly that of seniors), income inequality and relative social mobility — as comprehensively as possible, and seemingly with greater urgency.” Unquote.
In this year’s Budget, we can see that it is a strong move by the Govt to embrace the socialist ideals of the founding of the PAP for it not to lose the war though they have lost a few battles. What will be needed is for the Govt to stay focused in improving on what have been done in this year’s Budget. Will the PAP Govt has the political foresight and political will to enhance it in the next 3 budgets in preparation for the 2016 GE?
HOW THE S$600,000 IS ARRIVED AT?
How the total amount of benefits of $600,000 is derived at? MOF should be asked to disclose and support the $600,000 computation with transparent calculations.
The $600,000 is in MOF Tharman’s speech:
Paragrah B.25. quote: “In total, over a lifetime, a young low-income couple with two children can expect to receive more than $600,000 in benefits in real terms (2013 dollars). (This comes from subsidies and other means-tested benefits for their children’s education, housing, healthcare, Workfare, the GST Voucher, and other schemes.) This is much more than we used to provide in the past. In the last decade alone, we have more than doubled the lifetime benefits in real terms for such families.
B.26. When we take into account all the taxes that such low-income families will pay (mainly GST), they will get back far more in benefits. In fact, they will get more than five dollars in benefits for every dollar in taxes paid.” unquote.
2014 Budget:
HOW THE MEDIFUND & MEDISHIELD COULD BECOME MORE PROGRESSIVE IN THE 2014 BUDGET?
For those above 60 years of age, the main concern is rising medical costs in their twilight years. What is the solution to address this?
For the MediFund to be truly caring and to bring socialist ideals to greater heights, the Govt should revise the MediFund.
I hope the Govt will make the MediFund become more progressive in the 2014 Budget by having the following features:
Have the MediFund:
[a] pay half the amount paid by the insured [co-insurance payment] under the MediShield cover when hospitalised, the amount to be credited to the person’s CPF account;
[b] pay the MediShield insurance premium for those who are above 60 years but uninsured as at 1.Jan.2014; this is to have all Singaporeans to be covered by MediShield, and to ensure all above 60 are covered by MediShield;
[c] pay the hospitalisation bill for those who are no longer insurable as at 1.Jan.2014 whatever the person’s age [young or old];
[d] continue to pay the hospitalisation bill for those who are in abject poverty, unable to pay at all.
In addition have the Community Silver Trust pay for 21-night of Class C bed for those over 70 years of age. Make it conditional : not to allow upgrading to Class B, not encashable, and if not claimed due to demise of the person, the unused Class C bed nights [not transferable] will lapse.
Have the MediShield:
A] pay for outpatient bills if the amount incurred in a year exceed $400. First $400 to be paid by the person as an excess amount.
B] pay for in-patient hospital bills. First $1000 to be paid by the person as an excess amount for each hospitalisation.
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Medifund needs funds of $1 billion per year.
The funding to pay for my proposals should be capped at what is available in the Medifund at each point of time. That should be the upper limit so that there will be no burden on future generations financially.
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MOF THARMAN SHANMUGARATNAM’S SPEECH IN PARLIAMENT ON THE 2013 BUDGET – THE SALIENT POINTS ON RE-DISTRIBUTION OF WEALTH:
B.22. We will take further, significant steps in this Budget towards strengthening social mobility and increasing the progressivity and fairness of our system. In particular, with enhancements to Workfare, a low-wage worker who is 60 years old would receive a top-up of his pay of about 30%. This is in addition to what his employer can receive through the SEC, and the new Wage Credit Scheme, to be introduced in this year’s Budget, which will encourage his employer to up his pay.
B.23. While raising incomes is the best way to help lower- and middle- income Singaporeans cope with rising costs, this Budget will also include measures to help them more immediately. The most significant support will go to older Singaporeans, to help them with medical costs.
B.24. Taking all our measures together, including those which will be announced in this Budget, we are providing substantial benefits to lower- and middle-income Singaporeans. The full picture can be seen if we look at benefits over a lifetime, starting from a couple’s needs when they first have children, to the time they get old and need other types of help, especially with healthcare costs.
B.25. In total, over a lifetime, a young low-income couple with two children can expect to receive more than $600,000 in benefits in real terms (2013 dollars). (This comes from subsidies and other means-tested benefits for their children’s education, housing, healthcare, Workfare, the GST Voucher, and other schemes.) This is much more than we used to provide in the past. In the last decade alone, we have more than doubled the lifetime benefits in real terms for such families.
B.26. When we take into account all the taxes that such low-income families will pay (mainly GST), they will get back far more in benefits. In fact, they will get more than five dollars in benefits for every dollar in taxes paid.
B.27. However, today’s generation of older Singaporeans will not benefit as much as younger Singaporeans from the enhancements in Workfare and CPF and other schemes. We want to do more for this senior generation of Singaporeans, who worked over the years, often with low pay, to build a better future for their children. They made today’s Singapore possible. We will do more for them. The Government is reviewing the system of healthcare financing and some other schemes to help them in their retirement years.
B.28. Finally, the Budget will make significant investments to nurture the sports and arts, which play a growing role in enriching life in Singapore. Over the next five years, we will invest 30% more in sports programmes, and more than double our investments to develop regional- and community-level sports facilities. The Government will also create a new Cultural Donation Matching Fund, to provide dollar-for-dollar matching for donations to the arts and culture.
B.29. In short, we are building a better Singapore: a more inclusive and caring society, with an innovative and dynamic economy, so that Singaporeans can have better opportunities and more fulfilling lives.
tankoktim 