Though the deadline for the essay writing competition based on the above theme is over, I would like you to comment on the following:

1. What do you think are the key challenges facing Singapore in the foreseeable future (e.g. social, economic, security)? What kinds of spending needs arise from this?

2. With no natural resources and limited revenue sources, how would you prioritise these spending needs? What can we spend less on in order to meet these increased spending needs?

3. How should Singapore find the revenue to fund our future spending needs (e.g. raising taxes – if so, what type)? Are there other alternative sources of revenue you think should be explored? What are the implications of funding our expenditure through such means?

Try out this game on budget 2007 - If you were the finance minister:
http://app.mof.gov.sg/budget_2007/choice/index.asp

In the game you are to:
1. Tell us how much you would allocate for each aspect of our public expenditure.
2. Decide how you would raise the revenue to finance these expenditure items.

All countries face tough choices in fiscal policy. Like most choices in life, fiscal choices have their own set of tradeoffs, i.e. costs and benefits. Higher taxes lower household incomes but allow the Government to provide more for the less privileged. Lower taxes increase our business competitiveness but may undermine the Government’s ability to provide adequately for its citizens. Each choice taken also impacts current and future generations differently. Are our taxes too high? Where can we look to for more revenue to meet budgetary shortfalls?
There are no perfect choices. Each country decides based on its own circumstances, beliefs and values.

I hope that you will understand the role of the government much better after playing the game.Please add to comment after you have tried the game.

Let's discuss the latest economic issues here! Participate actively in commenting the issues which I will be posting here.