Same Budget. Different outcome?

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Tuesday, 01 March 2011

Singapore Democrats

Albert Einstein once said: "Insanity is doing the same thing over and over again, and expecting a different outcome." He wasn't talking specifically about our national Budget, but he might as well have.

If one examines past Budgets from 2001 to 2010 one will see that, year in and year out, the allocation of expenditure to the various ministries have remained more or less the same.

In every Budget, the Ministry of Defence gets the most money of nearly 30% of the total national expenditure followed by the Ministry of Education. A distant third are the Ministries of Home Affairs, Health, National Development, Trade and Industry, and Transport. (See figure below) The rest take up much smaller chunks of the Budget.

From the figure above, it is clear that Budget 2011 is no different from the rest of the years in the past decade. It mirrors the priorities that the Government gives to the various arms of the Executive with the aim of achieving its goals for the Fiscal Year.

If one examines the percentage of funds allocated to the ministries over the years, it quickly becomes obvious that the figures remain remarkly consistent from one year to the next:

Allocation of these funds will determine how our society turns out in terms of its socio-economic situation. In view of this, let's turn our attention to the results of these Budgets and the impact they have had on our society through the years.

First, there is the income disparity. Since 2000 the Gini coefficient has been steadily rising. (The Gini coefficient is measure of income inequality with a bigger number indicating greater inequality.) The number reached its peak of 0.489 in 2008 before dipping in 2009 to 0.471. In 2010 it is on the upward tick again at 0.472.

Second, our labour productivity has been migrating south since 2005 with 2008 registering a sharp decline. In 2009 it registered a negative 14.2%. This was the poorest performance, by far, in Asia which showed an increase of 2.4%. Even worldwide the average productivity change was only -1%.

The Government finally admitted to this problem in 2010 and formed the Economic Strategy Committee headed by Mr Tharman to tackle the problem.

The result? He came up with a Budget that was no different from the previous year. Or the one before. Or before the one before.

Third, our national birthrate has been on a slide since 2000. From 12.8 births per 1,000 population, the rate has plummeted to 8.82 in 2009. For years, if not decades, the PAP has thrown money at the problem. It has given incentives to young couples to produce more babies. Nothing worked. The more important point is that nothing in the Budgets changed to make it work.

Such a trend presents serious consequences for our nation. A shortage of citizens has significant implications for our economy and national security.

Singapore births per 1,000 population

These three indicators form the very foundation of our economy. Income disparity, labour productivity and the national birthrate are what determines whether our economy remains viable.

If the wealth gap continues to widen, social tensions will mount and this has repercussions for the country.

Such tensions will also inevitablly lead to falling productivity. What worker feels more encouraged when she finds herself working harder and harder only to find standards of living slipping?

This, in turn, deters younger people from starting families or wanting to have more children, forcing the Government to bring in more low-waged workers which then suppresses wage levels leading to the increase in income gap, and the vicious cycle goes on.

Given that the PAP prides itself in having a 'helicopter vision' for the country, it is amazing that its ministers cannot see this bigger picture and allocate our financial resouces in a manner that would reduce the wealth divide, boost productivity, and increase our fertility rate.

With Budget 2011 mimicking previous ones, however, it looks like we are going to be getting more of the same despite all the feel good statements about change that the PAP is spouting.

Obviously, the party doesn't have very many Einsteins within its ranks.

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Comments (5)

Tue 01 Mar 2011 11:17 AM | Mr. Tan K S

It is time for Sporeans to have a mindset change and to vote in SDP, it is time for CHANGE. we cannot afford to live in such an environment, a vote for the opposition is a vote for you, and your children!

Tue 01 Mar 2011 1:58 PM | King Cobra

Wow, SDP you are indeed, turning heads and minds of people, including hardcore pap supporters, in realizing the facts of current singapore stste of affairs.

Great, and keep going, in creating awareness, realization, understandings, awakening etc............throughout, for the benefit of all singaporeans.THANKS!

Wed 02 Mar 2011 12:45 AM | freedomT

But one thing for sure, there is nothing new or different with PAP budget. Give us some money to shut us up while they will raise their own salary by another 95% this Nov. After that, they raise again everything. Now they say it is a well balanced and generous budget that will help us but after that they say we have to pay more for them to function.

With low salary which is already out of this world highest paid monkeys, they wanted more and more money from us. If we don't agree, they will make sure our mothers, wives and daughters become maids in other countries. Other countries already have a change of government and yet we are still sponsoring this greedy and expensive government that only care about their own pockets and foreigners. We would be stupid to keep them. If no revolution can happened in Singapore, we have to use the election to vote them out for good.

Only with SDP and opposition become the government, all costs will go down and more Singaporean friendly policies would be in place. Stupid PAP, when WP say they want to send back foreigners, they can qoute sending back construction workers and all these jobs that Singaporean doesn't want.

What WP is saying those foreigners that are working jobs that Singaporean wants but CANNOT GET. When comes to GST, they say it is fair to everyone and it helps the poor. By reducing it, it benefits the rich only. They think we are stupid la. At the current rate, the GST benefits the rich but killed the rest of us. We can have a Rich man tax to tax the rich but not the rest of us. they won't still admit that their lousy policies causes all these mayhem. since they refused to treat us as people, we must not support them. Vote the PAP out and ban the PAP forever.

Wed 02 Mar 2011 1:32 AM | dinggo35

Seriously the only regret I have is Dr Chee being unable to contest this coming GE.I hope we can start another round of online donation to redeem his 0.5 million debt assuming if this amount was paid and he could contest the GE then. 0.5 million....would this be even possible? who knows? Never try never know =P

All the way SDP (First time being supporter of SDP) !!!

Thu 03 Mar 2011 1:03 PM | Prime Citizen

It will be interesting if SDP can put into figure
the allocation of expenditure to the various ministries when SDP be the New Government? Which ministry will get the highest percentage and which will get the lowest and the reason and purposes for those figures. Any surpluses reflect oversight of the Budget.