Why dont we increase the NIRC instead?
- Contributions from Reserves (NIRC) is now our single largest source of revenue. It is unwise to over-depend on one source.
- Reserves are our national savings for a rainy day.
- Our generation is benefiting from NIRC because past generations saved and grew the reserves.
- We too should leave a fair amount to future generations - we balance this by using 50% and reinvesting 50% of our investment returns.
Link to https://www.mof.gov.sg/docs/default-source/default-document-library/ifaq-gst-2020/gst_q1.jpg (NIRC Chart).
Related questions
Why don't we spend more of the investment returns, since the reserves are growing?
Will RMGS increase the amount of Net Investment Returns Contribution (NIRC) available for spending? Can this offset planned tax increases?
How do Singaporeans benefit from the investment returns from our reserves?
Is our CPF money safe?
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