[Congress]Issuing shopping vouchers is not a long-term strategy, nor is it the only subsidy

Premier Huang Xuncai emphasized that helping Chinese people cope with rising living expenses by issuing shopping vouchers is not a long-term strategy. More funds are invested in helping Chinese people improve their education and skills through systematic plans and gain a foothold in a changing world.

In his speech at the summary speech on the budget debate on Friday (February 28), Wong Xuncai responded to opposition leader Bi Danxing and Forward Party non-constituency MPs such as Liang Wenhui, who questioned the government's response to the increase in living expenses by issuing shopping vouchers.

Huang Xuncai stressed that shopping vouchers are never the only subsidy for the government to help Chinese people cope with rising living expenses, “they are just temporary subsidies, not long-term solutions.”

He pointed out that living allowances and SG60 packages only account for about 5% of the entire budget, and more funds are invested in systematic plans to provide more education and skills training for Chinese people. “This will ensure that the Chinese people are not only helped, but also gain a foothold in a changing world, seize better opportunities and achieve greater development.”

Wong Xuncai also refuted opposition MPs' views that raising the consumption tax has exacerbated the increase in local living expenses. He pointed out that as a small and open economy, my country's inflation is mainly caused by external factors.

Further reading

[Parliament]Premier Huang: The government will strengthen the skills development system to support Chinese people in response to economic transformation

Premier Huang: SG60 supporting facilities and living expenses account for about 5% of the budget

Huang Xuncai emphasized that before the consumption tax was raised, prices had already begun to rise, both at home and internationally. The Monetary Authority of Singapore also judged that the impact of rising consumption tax on local inflation is only temporary.

He took the Consumer Price Index (CPI), which reflects inflation levels, as an example, and said that the CPI grew by 6.1% in 2022, and after raising the consumption tax by one percentage point to 8% in January 2023, the CPI rise in the same year slowed to 4.8%; after raising the consumption tax again in 2024, the CPI increase in the same year narrowed to 2.4%.

“I know the election is approaching, but the House of Congress is not an election gathering place. Let's not be overwhelmed by boasting, but debate based on facts.”