What’s there not to like about Budget 2013? That depends on what’s your instinctive reaction after hearing/reading DPM Tharman speech yesterday?
Aspiring first-time car owner: “What? Forty per cent cash down for a car? How can? Can those China-made cars please come back? Wait, the COE will be higher than the price of the car..’’
Rich guy: “How dare they tax my second home at the Sail, my third at Sentosa Cove and my fourth in Bukit Timah! Time to buy a building at Iskandar.’’
Befuddled economist/pseudo economist: “The government is paying employers to pay workers who get a pay rise? Why not just implement a minimum wage scheme?’’
Sandwiched class: “Damn! More income support for the lower-income. From MY taxpayer money. Why don’t just cut GST and everyone will be happy since it’s most regressive tax around and G made so much surplus already?’’
Big -flat homeowners: “Again five-roomers and executive flat people lose out. The Government think we all not poor just because we live in bigger places ah? Better downgrade and use the Silver Housing bonus – but I love my big place!’’
About-to-be bankrupted restaurant owner: “I will now close my restaurant. I can’t get foreign workers and the Government not even doing anything about my rent. At least can tahan if rent not so high.’’
Earning below $4,000: “My boss had better give me a pay rise now since the Government is subsiding 40 per cent. Actually it means my pay rise can be higher BY 40 per cent from whatever my boss thought. But I bet the stingy fella will just save the money for himself.’’
Panicked mother: “At least got more kindergartens than just the PAP and NTUC one. MOE also starting its own. I think everybody is going to go to the MOE one. Sure got standard, got subsidy. Better queue now while Ah Boy is six months old.’’
I don’t mean to pour cold water over the Budget which I think is pretty cool. This is a G with ideas taking a big picture look at the present and the future. The budget is characterised as a shifting of gears and I so agree. We’ve been in cruise-control for too long – or running ragged at top gear?
How people react will depend on what bit bit them most. Hard to look at the big picture when you see your new car disappearing into the distance. That promise to fix the transport infrastructure MUST come true! Hard to be happy when you are facing the prospect of closing down your business. I mean, which retailer or restauranteur will say: Actually, this isn’t for me. I should change lines. (And become a cigarette smuggler: sure got demand! Kidding ok…)
I liked that steps are being taken to address income inequality; whether they are bold enough is the question of course. But, at least, something is being done to raise their incomes while at the same time sustaining the smaller enterprises who scream about lack of foreign manpower.
My worry about such handouts have always been whether the enterprising enterprises will find a way to “game’’ the system, not just the Work Credits scheme but also Workfare Income Supplement and Productivity Innovation and Credits scheme. Big money is being paid out, what are the checks and balances and at the end of the day, how do we measure results?