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Parliamentary Procedures

6 April 2016

Debate on Annual Budget Statement 2016

4 April 2017

Early Release of Draft Budget Statement for Public Consultation

8 May 2017

Motion: Amendment of Standing Orders

(Supplementary Question) Louis: May I ask the Minister if he is considering backdating the start of the First Step grant and also refining the public consultation process, please?

Mr Heng Swee Keat: It is not the general practice to backdate particular schemes. This is done only under very exceptional circumstances.

As for Mr Louis Ng's question on whether we will start the consultation earlier, first, let me say that, my round-up speech does not allow me to address every suggestion that Members have put up. Do bear with me because, I think we had 13-14 hours of debate. If I addressed every point, you may end up hearing me for 13-14 hours!

Let me address this specific point – although the formal Budget consultation process starts in a very intense period just before the Budget, the way in which the Budget process works and in which Government agencies work, is that this is an all-year round exercise. This is an all-Ministries exercise. Throughout the year, we gather feedback, we study data, and we look at what needs to be done. We gather feedback from businesses, from people, and from various sectors – not just the Ministry of Finance but every agency, every Ministry. I would like to assure Mr Louis Ng that the work does not start only a month before the Budget!

We also have various feedback mechanisms, be it REACH or the various exercises that we hold. This year, we even did something special – we had SGfuture dialogues as part of the Future of Us exhibition. There were extensive discussions with the public. So, it is not as if the Budget process only starts a month before; it cannot be.

Also, let me clarify that many businesses prefer to give their feedback closer to the Budget, as the economic situation is clearer, as the business concerns are clearer. We have tried to ask for earlier feedback but many of the businesses said, "That would not be appropriate."

I would like to assure Mr Ng that this is not a last-minute exercise. It is an all-year round, 365-day, Whole-of-Government exercise. 

Source: Hansard (Parliament of Singapore)

Louis asked the Minister for Finance whether the Ministry will consider releasing a draft Budget Statement for public consultation one month before the delivery of the Budget Statement in Parliament.

Ms Indranee Rajah (for the Minister for Finance): Madam, we agree that engaging and consulting the public are valuable to the Budget process. In fact, preparations and consultations for the Budget take place all year round. Throughout the year, the Government gathers feedback and studies data to formulate and implement better plans. This consultation effort goes beyond MOF and includes the outreach and consultations by other Ministries and REACH to Singaporeans, businesses, workers and various sectors.

The feedback gathering is intensified around the end of the year, typically by early December, in a more formal Budget feedback exercise. The process is structured along certain themes and questions, which in a way reflects some of the areas being examined for the coming Budget.

For Budget 2017, REACH had Listening Points across Singapore over 10 December 2016 to 8 January 2017 to provide accessible, open booths for Singaporeans to give their views for Budget 2017. REACH also hosted events, such as the Pre-Budget 2017 Conversation and Facebook Q&A Session for Singaporeans to directly engage with policy-makers and Members of Parliament. MOF ran engagement sessions with stakeholders, such as trade associations, and grassroots leaders. This past year, through the work of the Committee on the Future Economy, there were additional engagement sessions with students, industry leaders, unionists and academics. Feedback received during these consultations had further contributed to the formulation of the Budget.

On the timing of consultation, we have found from our interactions with companies and stakeholders that many of them would prefer to give their views closer to the Budget as the economic situation for the coming year is clearer and business concerns become clearer.

The current spread of engagement opportunities during the year, growing more intensive nearer Budget Day, achieves the goal of engaging Singaporeans to think about our future, as Mr Louis Ng's suggestion intends.

The Budget is not a destination, but part of a journey of feedback-gathering, analysis, policy review and refinement, in order to improve Singapore and the lives of Singaporeans.

Louis: Thank you, Madam, I am aware that we are doing a lot of public consultations, but I think the question is: whether we can do public consultations when the public already knows what the Budget Statement is going to be. So, at least they can give feedback, meaningful ones which we can use to amend or improve the Budget. Because what we are doing now in a lot of our dialogues is explaining the Budget to people, and we are not really getting their feedback on how we can improve it further.

Ms Indranee Rajah: Mdm Speaker, I thank Mr Ng for his comments and clarifications. There are really two parts to the consultation. Mr Ng spoke about explaining. The explaining part comes after the Budget has been delivered. Prior to that, there is a great deal of consultations, and the consultations take place, not just in the month or two before the Budget Statement is delivered, but it sometimes takes a long time.

For example, the Pioneer Generation Package is something which had its genesis in Our Singapore Conversation which started in 2012. It was announced in Budget 2014. It was two years in the making from feedback from people about their concerns, and also the feedback that they wanted to honour the elderly. So, it took two years to put together that particular package.

We also have, for example, in this year's Budget, the Global Innovation Alliance (GIA) and SME Go Digital programme. This was something that was borne out of the CFE discussions and recommendations. So, prior to the Budget, there were a lot of consultations, some of which were years in the making, some of which were in that year itself, some of it were in the months prior, or a month or two before. What we do do, rather than releasing a draft Budget in detail is, as I mentioned earlier, talk about themes. For example, on elder care, how we can assist for an ageing population.

These are themes that we float and discuss with people, and then we put it into the Budget. Because whatever it is, in any Budget Statement, there will always be different views. For example, if we were to put up a Budget and say, "We want to raise worker levies", what do you think the response would be? There would be some who may say, "Yes, let us do it straight away". I suspect there would be a lot more who would say "no". And then, what do you do? The Government has to take a position. The Government must make a policy decision. The Government has to make that call.

So, we draw in ideas from the consultations. We put it together, and then it is delivered at the Budget Statement. But the Budget Statement is actually still subject to the approval of Parliament. Parliament comes back and gives its final input and suggestions. That is why the motion that is moved by the Minister for Finance, when we have the Budget debates, is that "this Parliament approves the fiscal policy of the Government".

So, the process is really designed to be as efficient as possible, but at the same time, taking on broad feedback, and to the extent that it is not possible to incorporate something in a particular financial year but if it is a good idea, we will see if we can incorporate it in the months ahead, or in the following year.

Source: Hansard (Parliament of Singapore)

(Supplementary Question) Louis: Thank you, Madam. Just one clarification. The Leader mentioned earlier that depending on the number of Questions and the amount of business for the day, these are the criteria used to extend Question Time. Could the Leader more specific? Say, if there are more than 80 Parliamentary Questions (PQs) or less than three Bills, then Question Time will be extended? Can she clarify maybe the procedures?

Ms Grace Fu Hai Yien: Mdm Speaker, I thank the Member for the clarification. Unfortunately, I think when it comes to sequencing Question Time, it is probably more art than science, primarily because very often, we are unable to determine beforehand the length of speeches that Members will make. We run the risk at times, as we have seen in the last sitting on 4 April, the sitting had to be extended to 10.00 pm. So, it is not something that we could envisage in advance or with some scientific formula. But let us put it this way. If we find that there are Questions being piled up and if the rest of the agenda allows us to do so, we will definitely extend the Question Time, as I have done so twice last year.

Source: Hansard (Parliament of Singapore)

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