Fortitude Budget: Further draw of S$31b from reserves

SINGAPORE President Halimah Yacob has given her in-principle support for a further draw of S$31 billion from the past reserves, to fund the fourth round of Covid-19 support measures.

That brings the total amount to be drawn from past reserves this financial year to S$52 billion, to "enable Singaporeans to tide through this crisis and emerge stronger", Deputy Prime Minister Heng Swee Keat said on Tuesday after unveiling the Fortitude Budget.

"This is a very significant amount, necessitated by the very exceptional nature of the Covid-19 crisis," he added.

"I am grateful that we have the fiscal resources to mount this response, and the unity, resilience and solidarity of our people to battle this together."

The Fortitude Budget will commit S$33 billion to support the next phase of Singapore's fight against the pandemic, and to position the country and its people to emerge stronger.

Together with the earlier three Budgets announced this year, the Republic is dedicating a total of S$92.9 billion or 19.2 per cent of its gross domestic product (GDP).

The overall budget deficit for fiscal 2020 will increase to S$74.3 billion, or 15.4 per cent of GDP, Mr Heng said on Tuesday.

"This is the largest overall budget deficit in Singapore's history since our independence," he noted.