International Business & Economy Budget 2020: It will be "more expansionary" because of difficulties and uncertainties

Budget 2020: It will be “more expansionary” because of difficulties and uncertainties

But fiscal surplus "sufficient" for funding deficit, so no need to draw on past reserves




- Advertisement -

In the Budget Statement in Parliament on Tuesday (Feb 18), Deputy Prime Minister and Finance Minister Heng Swee Keat gave a summary of Singapore’s overall Budget position, noting that it is expected to be “more expansionary”.

FY 2019

The Government is looking at an overall Budget deficit of S$1.7 billion, or 0.3 per cent of GDP for fiscal year 2019, said Mr Heng. Due to “lower-than-expected expenditures arising from unforeseen project delays”, the deficit for FY2019 is S$1.8 billion less than the S$3.5 billion deficit forecast a year ago.

Excluding the the Government’s top-ups to funds and Net Investment Returns Contribution from its reserves, it expects a basic deficit of $5.1 billion, or 1.0 per cent of GDP.

FY 2020

Singapore’s Budget position for the new fiscal year will be “more expansionary”, noted Mr Heng. Due to increased risk in the global economy and the Covid-19 outbreak, which continues to ravage the world, the city-nation’s economy is facing difficulties and uncertainties.

- Advertisement -

The Government’s Budget position, which will have a larger basic deficit of S$12.3 billion,  should provide a “fiscal boost’ to the economy. This, alongside the Stabilisation and Support Package, should be able to cover “near-term” concerns.

Mr Heng noted that Singapore can expect an overall Budget deficit of S$10.9 billion or 2.1 per cent of GDP during this fiscal year. He said that as the country’s fiscal surplus is “sufficient” for funding the overall deficit in Fiscal Year 2020, there will be no need to draw on past reserves.


Send in your scoop to 

- Advertisement -

Josephine Teo: From May 1, Dependant’s Pass holders will need work pass for employment

Singapore — Manpower Minister Josephine Teo announced on Wednesday (March 3) tighter new rules for foreigners on Dependant’s Passes (DP) who want to work in Singapore. From May 1 of this year, they will need to obtain their own work passes, such...

😊 – Rest of the word = Smiley and happy: 😊 – Singapore= Symbol of anarchy

  I just saw a news clip in the Today newspaper, which said that Mr Louise Ng, the Member of Parliament (MP) for Nee Soon Group Representation Constituency (GRC), was being investigated by the police for holding up a “smiley face”, encouraging...

Actor seen on Mediacorp’s Vasantham accused by budding artiste of wanting to sleep with him after “private show”

Update as of Mar 4:   In response to TISG’s queries, Selva said: “There have been troubling allegations surfacing recently. I simply wish to say, I did not send any inappropriate message via Facebook. I believe my account was hacked before this incident, which...

Send in your scoop to