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SINGAPORE: Finance Minister Tharman Shanmugaratnam has hinted that next year's government budget is likely to be expansionary, with no major shift from the fiscal stance taken in Budget 2009.
Speaking in Parliament on Monday, he also said government spending is likely to go up next year, though the exact amount has yet to be determined.
Singapore is entering a new economic phase. The government has already planned to spend more on transport infrastructure, education and healthcare.
The finance minister told Parliament that next year's government expenditure will likely exceed the amount spent this year.
Mr Tharman said: "Overall, I don't expect that we'll see a major shift from the expansionary fiscal stance that we had this year, but it's too early to say exactly what our fiscal position will be.
"We'll have to look at the economic situation and outlook at the time of the budget as well as our revenue position. We will live within our means, within this term of government."
Mr Tharman said he does not expect revenue to be able to fully compensate for the expenditures expected next year, but stressed that the government will spend within its means.
However, he said Singapore remains committed to helping companies grow, restructure and raise productivity. While new measures may come in future, existing schemes like the Special Risk Sharing Initiative, introduced in Budget 2009, have produced positive results.
Mr Tharman said small- and medium-size enterprises have benefited from the scheme under which the government took on a significant share of the risks of bank lending.
He said: "From February to September 2009, the 16 participating financial institutions registered loans worth about S$4.9 billion under the various SME financing schemes. This is about seven times the value of loans approved in the same period last year."
The minister said 90 per cent of the loans went to SMEs, making up some 70 per cent of the total loan value disbursed. - CNA/vm
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