2020 deficit to rise to record S$39.2b, but Singapore's fiscal position remains robust

Analysts point to several strengths: Republic has strong reserves, it does not have external debt and it is one of only a few countries to enjoy triple-A rating

Published Thu, Mar 26, 2020 · 09:50 PM

DBS

Singapore

SINGAPORE'S overall budget deficit for financial year 2020 will rise to a record S$39.2 billion, or 7.9 per cent of gross domestic product (GDP), as the government rolls out a massive support package to save the economy, but the country's fiscal standing remains solid, say analysts.

The record S$39.2 billion deficit is nearly four times the S$10.9 billion or 2.1 per cent of GDP, estimated slightly more than a month ago during Budget 2020.

"We are able to support this unprecedented deficit and still remain fiscally sustainable because we have been disciplined in the use of past reserves, tapping on it only in exceptional circumstances like these," Deputy Prime Minister and Finance Minister Heng Swee Keat said in Parliament on Thursday, as he delivere…