"Our days of structural surpluses are over," said Deputy Prime Minister Lawrence Wong.

The Finance Minister was responding to Jurong GRC MP Tan Wu Meng, who'd asked if there was a possibility of replacing the S$40 billion withdrawn from the reserves during the Covid-19 pandemic.

Tan asks about putting back reserves again

The first time the government withdrew from past reserves was during the 2009 financial crisis.

They withdrew S$4 billion.

The funds were later returned to the reserves in 2011 after the economy picked up.

"We know the world ahead is dreadfully uncertain," said Tan. "But there may also be opportunities which allow Singapore, if luck and good policy favour us, to have possibly some exceptionally good years in future."

In light of this, he asked DPM Wong if it would be feasible to replace "some" of what was drawn down from the reserves during the pandemic.

DPM Wong looks at facts and reality

DPM Wong acknowledged that one's "immediate instincts" would be to repeat this particular act in history.

"Hypothetically speaking, if there is indeed such a bumper year, maybe it will happen," he conceded.

But then he turned back to "reality".

"If you look at the facts and if you look at what's going to happen, this will not happen. I mean, I can't imagine that we will be able to produce surpluses that we used to have, like in the past. That's what I was trying to say.

Where will the surplus come from?"

DPM Wong elaborated that even if GDP grows, revenue will likely grow at the same rate.

"So I think we just have to be realistic. Those days of structural surpluses are over," he said.

"We are in a different environment. And we will do well just to be able to maintain balanced budgets on our current settings."

DPM Wong questions WP's stance on reserves

Addressing DPM Wong's earlier speech on the usage of reserves and the opposition's suggestions, Workers' Party (WP) chief Pritam Singh said that the latter was made "in a particular context".

Previously in parliament, Prime Minister Lee Hsien Loong had said that WP's "tune has changed" with regard to this issue.

DPM Wong pointed out that WP had previously objected to GST but eventually accepted the GST at 7 per cent.

He inquired if "perhaps Mr Singh might clarify" whether WP would also accept the 9 per cent GST "as a reality".

He asked if Singh would say that WP's proposals to use more of the reserves "are therefore no longer relevant" and that WP is "fully consistent with the People's Action Party (PAP)" when it comes to such framework and rules.

WP looks at all options: Singh

"I would say," Singh said in response, "That when we make proposals, it is in the context of what is before us at that point in time."

He said that he "cannot make any promises here" that WP is "reneging or stepping back" on a commitment to look for revenues to fund policy objectives.

The WP will have to work with the information that they have, he said.

"We are not in government. And if it means that we have to look at all options, we will look at all options."

DPM Wong assured that the Ministry of Finance (MOF) will "certainly continue to provide more information where necessary".

WP is 'free to change its position': DPM Wong

"There was a time when there was alignment in this house between the PAP and the Workers' Party," DPM Wong recounted.

He pondered if there now existed a difference in "fundamental fiscal philosophy" between the parties.

He remembered a time under former WP leader Low Thia Kiang when the house shared a common "ethos of fiscal responsibility".

"It seemed to me that this had changed under Mr Pritam Singh," he said.

WP is, "of course", free to change its position, DPM Wong added.

But he maintained that the PAP's position "is quite clear" when it comes to certain fundamental principles and values, especially on fiscal responsibility.

He stated that such principles were put in place by founding leaders.

"They have continued under successive leaders of the PAP, and they will certainly continue under my watch," he said.

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