Solidarity Budget: S$5.1b third relief package to require another S$4b draw on past reserves
The Government’s third Covid-19 relief package will cost a total of S$5.1 billion, Deputy Prime Minister Heng Swee Keat said.
SINGAPORE — The Government’s third Covid-19 relief package, aimed at supporting businesses, workers and households through the “circuit breaker” measures, will cost a total of S$5.1 billion, Deputy Prime Minister Heng Swee Keat said.
To fund the Solidarity Budget, S$4 billion more will need to be earmarked from past reserves, adding to the S$17 billion drawdown needed for the second package — the Resilience Budget — unveiled two weeks ago, Mr Heng said in Parliament on Monday (April 6).
President Halimah Yaacob has also given her in-principle support for this additional amount, he added.
This drawdown will specifically be used to fund the enhanced Job Support Scheme, the enhanced Temporary Bridging Loan Programme and Enterprise Financing Scheme, and the extra $300 payment each to all adult Singaporeans.
The remaining S$1.1 billion will be funded from the “fiscal space of this term of government”, Mr Heng said.
This increased spending in the Solidarity Budget will add on to the second Resilience Budget announced on March 26, which still requires Parliament’s approval.
“With the significantly stricter pre-emptive measures needed to protect Singaporeans and our families, it is now necessary for us to propose a further draw on past reserves.
“These measures will impact our workers and businesses severely; additional support will be required to save jobs, preserve capabilities, and provide immediate direct assistance to Singaporeans to help them tide through this exceptional and difficult period,” Mr Heng, who is also Finance Minister, said.
In total, the three Budgets this year would increase the overall budget deficit for the 2020 fiscal year to S$44.3 billion, or 8.9 per cent of Singapore’s economy.
Covid-19-related measures alone would cost a total of S$59.8 billion, or about 12 per cent of the economy, Mr Heng said.
“This is an unprecedented budget, for extraordinary times. The situation remains highly fluid and uncertain. The Government stands ready to provide further support, should it become necessary.”
