It will be “ill-disciplined and unwise” of the Government to change constitutional rules in order to raise contributions from the country’s reserves (NIR) as a “first resort” to fund increasing expenditure, said Finance Minister Heng Swee Keat. Addressing suggestions from MPs to raise the 50 per cent NIRC cap or use a portion of land sale proceeds for recurrent social spending, Mr Heng said: “All these sound very tempting – it seems relatively painless to do so compared to raising taxes. But is it the right thing to do? No.” Under the Constitution, state land and revenues from land sales form part of Singapore’s past reserves, which are invested. The rules on reserves had been “enshrined” in the Constitution following parliamentary debates, Mr Heng pointed out. The cap was deliberately introduced so that the government of the day “(does) not succumb to the temptation to draw more from our reserves to fund current expenditure, or eat into the principal sum”, he said.... Continue Reading