“A loving partner plans for the future.”
Finance Minister Heng Swee Keat, said in a message to Singaporeans last Sunday that he would unveil a set of “broad-based” measures to support viable companies and help workers stay in their jobs.
The relief package for Budget 2020 today has surprised even the financial experts. An extraordinary $5.6 budget will be given out to help Singaporeans.
Why is it that despite an estimation of budget deficit of $10.9 billion for this year does not need to draw on its past reserves and yet, able to give our such sweet packages? Is it because the general election is approaching?
No. It is not due to the impending general election.
Singapore government must maintain a balanced budget each term. It means that she cannot spend more than what she collects in tax revenues. Any extra savings at the end of each year are kept as current reserves but could be used during times of crisis such as this current COVID-19.
For this year, thanks to her careful expenditure and savings accumulated over the past 4 years, we get ourselves sheltered during this period of rainy days.