Fortitude Budget: Extra S$13b to be set aside in Contingencies Funds

Janice Heng

Published Tue, May 26, 2020 · 09:37 AM

TO enable the government to act swiftly if needed to tackle the unpredictable Covid-19 crisis, an extra S$13 billion will be set aside in the Contingencies Funds this financial year, said Deputy Prime Minister and Finance Minister Heng Swee Keat in Parliament on Tuesday.

Under the Constitution, Parliament can create Contingencies Funds to cater for urgent and unforeseen expenditure needs. In each year's Budget, a total of S$3 billion is set aside in the Contingencies Fund and the Development Contingencies Fund.

"With Covid-19, we are facing unprecedented levels of uncertainty - it is uncertain how the pandemic will evolve, if there will be a second or even third wave, and if, and when, vaccines will be available," said Mr Heng, noting that Singapore has seen an unprecedented four Budgets in less than four months.

An additional S$13 billion is thus being set aside in the Contingencies Funds "so that we can respond to urgent and unforeseen needs swiftly", with Cabinet, the President, and the Council of Presidential Advisers having been briefed on this, said Mr Heng.

This will allow the government to take quick action, which "could include public health or fiscal measures that have to be put in place quickly, if the medical or economic situation deteriorates", he added. "We will do our best to avoid this, but we must be prepared for any eventuality."

Under the Constitution, the Finance Minister can advance sums from the Contingencies Funds if there is an urgent and unforeseen need for expenditure, and the President concurs with the making of such advances. The amount advanced will then be included in a supply Bill to be presented to and voted on by Parliament.