Fiscal deficit totals $74.3b: DPM Heng

This follows after Singapore unveiled the $33b “Fortitude” budget.

Deputy Prime Minister Heng Swee Keat stated that Singapore’s fiscal deficit has will widen to $74.3b, which is said to be equivalent to 15.4% of GDP.

This follows after DPM Heng unveiled the $33b “Fortitude” budget, which has put great emphasis on staff retention, rental relief and digitalisation.

Heng stated that the Fortitude budget already comes from its second draw from their past reserves, sharing that they are proposing another one amounting $31b. This brings to a total drawdown of reseres of nearly aroun $52b, which is 10.7% of GDP.

“Although we see reserves as far from being exhausted, it will leave the government with fewer resources to combat the next downturn. Despite its previously stated emphasis on developing infrastructure and meeting the spending needs of an ageing society over the long term, we expect the government may pursue a tighter fiscal policy stance post-crisis in order to replenish its fiscal buffers,” commented Christian de Guzman, senior vice president of sovereign risk group at Moody's Investors Service.