Why do we still need to raise GST when HSR is not going ahead?
GST and HSR project are separate issues. They do not affect each other.
Increase in GST is not meant to finance lumpy infrastructure investments.
Large, lumpy infrastructure investments will be funded as follows:
Saving ahead e.g. Changi Airport Development Fund and Rail Infrastructure Fund.
Borrowing by Statutory Boards and Government-owned companies.
We are also studying option of direct Government borrowing.
Unlike infrastructure projects, recurrent needs (e.g. healthcare, security, education) call for recurrent sources of revenue.
GST is one such revenue source that supports these needs.
Raising GST to meet these needs is a responsible and sustainable approach.
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