Coronavirus Singapore: government digs deep on new relief package
- Deputy Prime Minister Heng Swee Keat says fresh drawdown of up to S$11 billion is necessary ‘given the exceptional circumstances we are in’
- The total drawdown in 2020 and 2021 is now expected to be S$53.7 billion
Unveiling the 2021 budget in parliament, Deputy Prime Minister Heng Swee Keat said the fresh drawdown of up to S$11 billion (US$8.31 billion) was necessary “given the exceptional circumstances we are in”.
“We are extremely fortunate to be able to tap on our strategic assets and deploy the resources required to deal decisively with Covid-19 and the considerable uncertainties that lie ahead,” said Heng, who is also finance minister. “We should never take our reserves for granted.”
Last year, the government obtained approval from the country’s president, Halimah Yacob, to draw some S$52 billion from the reserves, though Heng said the government now forecasts the 2020 drawdown to be S$42.7 billion. Expenditures were lower than expected in areas such as public health as the Covid-19 situation in the city state had been brought “largely under control”, Heng said.
The total drawdown for both last year and this year is now expected to be S$53.7 billion.
Heng also indicated a willingness to draw even further on reserves, saying that based on the current outlook with the expectation that the economy would recover, the government should be able to meet a statutory requirement for it to balance its budget.
“However, if the global public health and economic outlook worsens, we may not be able to do so,” he said. Further drawdowns would be used to fund economic transformation measures, and Halimah has been briefed on this strategy, Heng said.