S$2.5 billion poser

Channel News Asia reported the finance minister's comment that Singapore's FY08 budget deficit will swell to perhaps more than 3 times the S$800m estimated. So what are the implications?

We all know a deficit is when you spend more than you earn. We all know a deficit in Singapore must be fiercely addressed. It is logical, therefore, that the country now has to spend less or earn more or both.

The government can't morally spend less while encouraging the population to continue to spend (and spend more) to sustain the economy. We all (sorry, maybe some of us) know how the country earns.

The government can't morally increase the tax rates while announcing efforts to reduce them. But apart from taxation, the government has other avenues to earn. So do expect your fees to increase and what you have taken for granted in the past to be charged.

There is some S$2.5 billion to be addressed, at least.