Singapore is planning the largest budget deficit since 1997

Singapore will increase the budget deficit to a maximum at least since 1997, sending 6.4 billion Singapore dollars (4.6 billion U.S. dollars) to support the economy amid the outbreak of coronavirus. About it reports Bloomberg.

the budget Deficit will increase to 2.1% of GDP in the fiscal year ending in March 2021, with a projected 0.3 percent this fiscal year, said Finance Minister of Singapore Heng Swee kit in Parliament.

the Government will allocate 800 million Singapore dollars to fight the spread of the outbreak of the coronavirus and will provide two packages of economic assistance for a total amount of 5.6 billion Singapore dollars to support businesses and consumers.

the Finance Minister also announced that the planned tax increase on goods and services will not take place in 2021, given the current state of the economy, but tax is still to be upgraded by 2025.

the Government will provide a subsidy package worth 6 billion Singapore dollars to support consumers when there will be a tax increase.

this week the Ministry of trade and industry of Singapore has reduced the economic growth forecast for the year 2020 up to of 0.5-1.5%, pointing to the possibility of a recession due to the outbreak of coronavirus.

In 2019, the Singapore economy grew by 0.7%, the weakest rate since 2009.