Singapore’s Finance Minister and Deputy Prime Minister Heng Swee Keat, while delivering the Singapore Budget 2021 Statement on February 16, noted how during the last year Singapore has faced the worst recession since independence, as the world has fought the COVID-19 pandemic.
“Last year, in addition to our usual spending, the Government committed nearly $100 billion through five Budgets to support Singaporeans, help tide businesses over this difficult period, and most importantly, keep everyone safe," he said, adding, "Singapore’s GDP contracted by 5.4% in 2020. While the overall budget deficit for the Financial Year 2020 is also the largest since Singapore’s independence, at $64.9 billion, or 13.9% of GDP."
He forecasted this year’s deficit (Financial Year 2021) to be $11 billion, or 2.2% of the GDP.
He also noted how the Singapore Government shifted its focus from containment to restructuring as the city-state re-opened its economy. "We transitioned our broad-based support to more targeted ones for firms, especially those in the hardest-hit sectors. We introduced measures to preserve core capabilities. We shifted our focus from job retention to job creation and helped workers secure jobs in growth sectors," he said.
Now, on the theme of Emerging Stronger Together, the Deputy PM’s Budget for Singapore this year has measures for COVID-19 relief for businesses, workers and families; as well as for initiating structural adaptations in the economy over the long-term.
Read more about the comprehensive summary of the major announcements in this year’s Singapore budget for workers, businesses, families and charities at Singapore Company Incorporation.