Budget 2009 Highlights


Minister for Finance, Mr Tharman Shanmugaratnam unveiled a Resilience Package totalling $20.5 billion during Budget Speech 2009 to help Singapore see through the current period of exceptional difficulty. The key objective of the Package is to help Singaporeans keep their jobs to the maximum extent possible and help viable companies stay afloat. The Package prepares Singapore to emerge with strength when the global economy recovers, and enhances capabilities and competitiveness for the long term.

The Package has five components:

1)


Jobs for Singaporeans
The Government will spend $5.1 billion to help Singaporeans stay employed so they can continue to support their families by introducing a Jobs Credit Scheme, Enhancing SPUR, (Skills Programme for Upgrading and Resilience) providing a WIS Special Payment and expanding recruitment across the public sector.

2)


Stimulating Bank Lending
The Government will extend $5.8 billion of government capital to stimulate bank lending through enhancing existing schemes and a new Special Risk-Sharing Initiative (SRI). The SRI comprises a new Bridging Loan Programme (BLP) and new risk-sharing schemes for trade financing.

3)


Enhancing Business Cash-flow and Competitiveness
The Government will implement various tax concessions and measures costing $2.6 billion to ease business cash-flow and sharpen Singapore's competitiveness.

4)


Supporting Families
The Government will spend $2.6 billion on direct assistance to Singaporean households, increased targeted help for vulnerable groups and additional support for Charitable Giving and the Community. These measures will be in addition to the help that the households will derive from the Jobs initiatives (mentioned above).

5)


Building A Home for the Future
The Government will spend $4.4 billion to continue to develop Singapore as a global city and the best home for Singaporeans by bringing forward $1.3 billion worth of infrastructure projects, $1 billion worth of sustainable development programmes, public housing estate rejuvenation and the upgrading education and health infrastructure.

The unprecedented severity of the global financial and economic crisis justifies a draw from Singapore's past reserves. The President has given in-principle approval for the Government to draw $4.9 billion from past reserves to fund the Jobs Credit Scheme and Special Risk-Sharing Initiative.

The revised Overall Budget Balance for FY2009 is a deficit of $8.7 billion (3.5% of GDP). The Basic Balance, which excludes the transfers to endowment funds as well as the contributions from Net Investment Returns, is a deficit of $14.9 billion (6.0% of GDP) imparting a large fiscal boost to the economy this year.