SINGAPORE — The Government expects an overall budget deficit of $10.9 billion, or 2.1 per cent of GDP, for fiscal 2020, said Deputy Prime Minister and Finance Minister Heng Swee Keat on Tuesday (18 February).
But there will be no draw on past reserves as there is enough fiscal surplus.
In his Budget speech on Tuesday, Heng said, “In the coming year, the Singapore economy faces considerable uncertainty, because of heightened risks in the global economy, and the rapidly evolving COVID-19 outbreak.
“Hence, for FY2020, our budget position will be more expansionary, with a larger basic deficit of $12.3 billion. This, together with the Stabilisation and Support Package, will impart a considerable fiscal boost to the economy to address near-term concerns,” Heng said.
He added, “With our fiscal prudence since the beginning of this term of government, we have sufficient accumulated fiscal surplus to fund the overall deficit in 2020.”
For FY2019, the Government expects an overall budget deficit of $1.7 billion, or 0.3 per cent of GDP, lower than the $3.5 billion deficit forecast a year earlier mainly due to lower-than-expected expenditures from unforeseen project delays.
“When we exclude the Government’s top-ups to fund the Net Investment Returns Contribution from our reserves, we expect a basic deficit of $5.1 billion, or 1 per cent of GDP,” he added.
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