SINGAPORE (Feb 18): Singapore is expecting a significant jump in the overall budget deficit this year.
This comes amid a series of packages unveiled Tuesday to help Singaporeans and businesses cope with the global economic slowdown, which has been exacerbated by the outbreak of the COVID-19 coronavirus.
For FY2020, Singapore is expecting an overall budget deficit of $10.9 billion, or 2.1% of GDP, according to deputy prime minister Heng Swee Keat in his Budget 2020 speech.
Excluding the government’s top-ups to funds and Net Investment Returns Contribution from past reserves, the “more expanisionary” budget position this year will result in a larger basic deficit of $12.3 billion.
“The outlook for the Singapore economy is subject to considerable uncertainty, because of heightened risks in the global economy and the rapidly evolving COVID-19 outbreak,” Heng says. “This [budget position], together with the Stabilisation and Support Package, will impart a considerable fiscal boost to the economy to address near-term concerns.”
For FY2019, Heng expects an overall budget deficit of $1.7 billion, and a basic deficit of $5.1 billion.
“With our fiscal prudence since the beginning of this term of government, we have sufficient accumulated fiscal surplus to fund the overall deficit in FY2020,” Heng says.
“There is no draw on past reserves,” he stressed.
