| Since the Budget Debate last
year, the Government has responded to the regional
crisis with two packages of stimulus measures
to stabilise the Singapore economy. In June 1998,
I announced a $2 billion off-budget package which
carried an impact of $1.6 billion on our FY98
budget. In November 1998, just three months ago,
DPM Lee presented to this House a $10.5 billion
cost-cutting package. This was in response to
recommendations of the Committee on Singapore's
Competitiveness. The package has an impact on
the FY99 budget of $1.8 billion.
We did not wait until the FY99
Budget to implement these measures because timely
response to the unfolding regional crisis is critical.
Our approach is to monitor developments closely
and respond with measures to maintain the competitiveness
of the economy relative to our export competitors.
The measures announced were designed to lower
overall business costs. The aim is to help businesses
tide over this difficult period and to keep as
many people employed as possible.
While we grapple with the immediate
problems of the economic slowdown, we must not
lose sight of longer term challenges. After the
region recovers, our competitors in Asia will
emerge stronger and fitter if they undertake the
economic reforms and restructuring needed to pull
them out of the economic crisis. We must therefore
resist the temptation to overdraw on our reserves
to offset unavoidable wage cuts, or allow ourselves
to succumb to the lure of welfarism which we cannot
reverse later. Instead, we should be taking steps
to enhance our capability for long-term competitiveness.
Before I move on to present details
of the FY99 expenditure programme, allow me to
recapitulate briefly the basic tenets of our expenditure
policy. Our aim is to foster the growth of the
private sector by keeping the public sector lean
and trim, whilst maintaining a high quality of
public service. We will live within our means
by ensuring that budgets are balanced over the
long term. Expenditure will be focused on fostering
future growth by investing heavily on developing
our human resources, in economic infrastructure
and other areas which yield lasting returns.
I will now highlight the salient
features of this year's expenditure budget. |
