2 out of 5 is equivalent to 40%

Just realised that the 2% point increase from current 5% is equivalent to about estimated 23% growth in the government's collection from GST. According to the budget speech a few days ago this could amount to about 900million sgd. To put things in perspective

1) building cost for one brand new school : 15million (estimate)
2) one new flyover at a busy junction : 20million (estimate)
3) one new F15 fighter : 10-15 million (estimate)

I am not saying that 900million is a lot of money, on the contrary, i think the GST system is a good way for collecting tax revenues while keeping the income tax low. However, I think it would be nice if we could have more understanding....in more micro terms.... about

1) how this money is going to be used.
2) how and under what circumstances do we review the next GST rate should the economy slow down or rise again.

Ok there are the GST rebates and credits to cushion this increment and I believe if the govt is as level headed as they were in the last decade, we should be able to continue to enjoy these goodies as long as we are doing well. But my concern is if we get into a doudrum, will there be more social welfare support?

Bottom line is, in good times ....giving us 700-1200 dollars in all the NRS shares etc could mean a brand new plasma tv but $300 could feed a family a for a few weeks in bad times.

i guess these would be the questions to be brought up by the Parliament in the coming weeks.

We'll just have to wait and see.....