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SINGAPORE – Armed with a $6.4 billion arsenal to fight the coronavirus and its fallout on the economy, this year’s expansionary Budget could run a historic deficit of $10.9 billion – the highest in 10 years.
Coming in at 2.1 per cent of Gross Domestic Product (GDP), it exceeds the projected deficit of $8.7 billion in 2009 during the global financial crisis, when the Government rolled out a S$20.5 billion Resilience Package to help Singaporeans and businesses.
That deficit was eventually pared down to $0.82 billion, or just 0.3 per cent of GDP.
But unlike 2009 when the government dipped into the past reserves, some powder has been kept dry this time around – thanks to a surplus of 18.7 billion accumulated over the current term of government.
Unveiling the 2020 Budget statement on Tuesday(Feb 18), DPM Heng said that Singapore is expected to have a $10.9 billion budget deficit this year.
This is a sharp climb from the $1.7 billion deficit chalked up last year, revised from the initial $3.5 billion deficit forecast a year ago.
EXPECTED REVENUE AND EXPENDITURE
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