Deputy Prime Minister and Minister for Finance Heng Swee Keat delivered the Singapore Government’s Budget Statement for Financial Year 2020 in Parliament on Tue, 18 February 2020. It is presented against a backdrop of the on-going COVID-19 outbreak, as well as broader uncertainties in the landscape.
The Government’s immediate concern is to protect Singaporeans from the risk of a further spread of the COVID-19 virus. $800 million will be set aside for the Ministry of Health and other ministries to respond to this outbreak. Concurrently, there are concerns on the economy and jobs. A $4 billion Stabilisation and Support Package will help workers and enterprises weather near-term economic uncertainties. The Government will introduce a Jobs Support Scheme to provide wage support to enterprises that retain local workers, and enhance the Wage Credit Scheme to help enterprises with the cost of wage increases. We will also grant a corporate income tax rebate for YA 2020, and introduce other measures to help enterprises with their cash flow.
In 2018, the Government announced plans to raise the GST rate some time from 2021 to 2025. After reviewing our revenue and expenditure projections, and considering the current state of the economy, the planned GST rate increase will not take effect in 2021. When the GST rate is raised, the Government will provide a $6 billion Assurance Package to cushion the increase for all Singaporeans.
Budget 2020 outlines a strategic financial plan to prepare Singapore and Singaporeans to seize new opportunities amid short-term uncertainties and longer-term structural changes, by
- Growing our economy and transforming our enterprises
- Caring for and nurturing Singaporeans at every stage of their lives
- Building and securing our nation
- Working together with Singaporeans