Singapore to lessen 2021 spending after record budget deficit

Singapore will be releasing next week its slashed budget that will support businesses after an unprecedented fiscal stimulus last year to lift the pandemic-battered economy.

Singapore’s trade-reliant economy is still groping for form after it suffered from its worst recession last year, with the government having already vowed tens of billions of dollars in fiscal package to lessen the pandemic’s impact.

The government initially posted a $74.2 billion deficit, or just above 15% of GDP, for the 2020 fiscal year which ends on March 31. The government targets to trim down the budget deficit to $10-$12 billion for the 2021 fiscal year, starting April 1.

Cash grants to households and jobless, as well as wage subsidies to businesses, are likely seen to get support from the government while economists expect more spending on schemes to recalibrate laborers to equip them for a post-pandemic world.