UNITED STATES (OBSERVATORY NEWS) — Singapore will increase the budget deficit to the maximum since at least 1997, directing 6.4 billion Singapore dollars (4.6 billion US dollars) to support the economy amid an outbreak of coronavirus. It is reported by Bloomberg.
The budget deficit will increase to 2.1% of GDP in the fiscal year, which will end in March 2021, with projected 0.3% in the current fiscal year, said Singapore Minister of Finance Heng Sweet Kit in parliament.
The government will allocate 800 million Singapore dollars to combat the spread of the outbreak of coronavirus and will provide two packages of economic assistance totaling 5.6 billion Singapore dollars to support businesses and consumers.
The Minister of Finance also said that the planned increase in the tax on goods and services will not take place in 2021, given the current state of the economy, but the tax will still be raised by 2025.
The government will provide a subsidy package of S $ 6 billion to support consumers when the tax increases.
This week, the Ministry of Commerce and Industry of Singapore lowered its forecast for economic growth for 2020 to -0.5-1.5%, indicating the possibility of a recession due to an outbreak of coronavirus.
In 2019, Singapore’s economy grew by 0.7%, at the lowest rate since 2009.
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