Balancing between being inclusive and being targeted

Finally, Members, including Miss Irene Ng, Prof Ivan Png and Mr Ong Kian Min, felt that our top-ups and assistance measures are currently spread too widely and thinly and, in their words, it is said "not targeted enough". I agree that, for targeted incentives, we should target the assistance better, in order to direct our limited resources to meet specific needs, and to get them to reach those who need them most. And that is why we need to think of extending means-testing in healthcare, and setting the right cost recovery rates in higher education. But working out the best way to implement these principles is not easy, and we will proceed carefully. We have said this many times, but I will say this again. No citizen will be deprived of basic healthcare or tertiary education for lack of means.

When our aim is to help those in need, then we should target the assistance better, so that it reaches those who need it the most. It is not easy to do precisely, because every household has different circumstances, and we cannot examine the finances or the spending habits of each household to decide who is in need and who deserves help. It is not only intrusive, but it is just not practicable. So, we have used proxies, like HDB flat size or sometimes with your CPF balances, although this is not ideal. But we will bear in mind the MPs’ comments, and we will try to develop better ways of targeting and identifying who needs the help. Then we can do it more effectively and equitably in future.

However, we need to balance between being inclusive and being targeted. When our economy has done well, and we have achieved good surpluses, it is only fair that some of it is distributed to all Singaporeans, including the higher-income groups who pay the bulk of income taxes. Some groups have complained that they do not receive much from this Budget, and that the Government has not put any real cash into their hands. They may have forgotten that Singaporeans have just received the third tranche of Economic Restructuring Shares just a month ago. In fact, one of the reasons why Chinatown was booming this year is because of the ERS. And 1.3 million Singaporeans have already withdrawn more than half a billion dollars of their ERS in cash. But, alas, the Minister for Finance is not the cai shen ye or God of Fortune, with ang pows for everyone every year.