Solidarity Budget: Further S$4b draw on reserves to fund third package

THE government's third round of measures introduced on Monday to help Singapore tide over the Covid-19 situation will cost S$5.1 billion.

This comprises S$4 billion for the boost in support for businesses and workers, as well as S$1.1 billion for the Solidary Payment, Deputy Prime Minister and Finance Minister Heng Swee Keat said in Parliament.

To fund the bulk of the new Solidarity Budget, DPM Heng has sought and obtained President Halimah Yacob's in-principle support to draw on an additional S$4 billion from Singapore's past reserves.

Specifically, this will be used to fund the enhanced Jobs Support Scheme, the enhanced Temporary Bridging Loan Programme and Enterprise Financing Scheme, and the Solidarity Payment to Singaporeans, he said on Monday.

The remaining S$1.1 billion of the new Solidarity Budget will be funded from the fiscal space of this term of government.

Last month, in rolling out the second round of measures under the Resilience Budget, DPM Heng had said he was prepared to propose to the President further draws on past reserves if necessary.

To fund part of the Resilience Budget, the President had earlier given her in-principle support for the government to draw up to S$17 billion from past reserves.

DPM Heng on Monday said that a further draw on past reserves is now necessary, given the significantly stricter pre-emptive measures needed to protect Singaporeans and their families.