FY20 Budget gears up to spend big with S$10.9b deficit

Singapore

THE expected overall budget deficit of S$10.9 billion for FY2020 is the highest in more than two decades, but economists say the budget plans outlined by the government on Tuesday are a sure sign of long-term prudent spending and fiscal resilience.

The projected FY2020 deficit, which represents 2.1 per cent of gross domestic product (GDP), is the highest expected deficit in dollar terms since FY1992, when the government implemented the reserves protection framework. In percentage of GDP terms, it outstrips the last largest deficit in FY2001, when Singapore was hit by the dotcom bust. The budget deficit that year was 1.7 per cent of GDP.