In the Budget Statement in February 2015, DPM Tharman Shanmugaratnam stated that the revenue measures the Government had already undertaken would provide sufficiently for the increased spending planned for till the end of the decade.

This is in line with Prime Minister Lee’s speech at the PAP convention on 19 November 2017, where PM Lee said, “For this current term of government, we have enough revenue”. The government began its five-year term of office after the General Elections in Sep 2015.

Nevertheless, as PM Lee explained in his speech, government spending has been going up. Planning for the issue now will allow us to better ease in the needed measures, and to give our people and businesses some time to adjust.

Any decision to raise taxes will not be taken lightly. But necessary investments in the future are needed. The Government has to remain forward-looking, and plan beyond this decade. But we will study all options carefully, and take steps with the least impact on the needy and on the economy.

Source: Ministry of Finance

This article is accurate as of Nov 2017. For latest updates, head over to www.mof.gov.sg