THIS WEEK’S TOPIC: Will Singapore’s 2020 Budget measures go far enough to cushion businesses against the economic slowdown this year?
SINGAPORE’S Budget for 2019 had a budget deficit of S$1.7 billion, or 0.3 per cent of gross domestic product (GDP). Comparatively, the 2020 Budget will see an overall budget deficit of S$10.9 billion, or 2.1 per cent of GDP and no draw on past reserves. It is a generous budget.
Many industries are hit hard by the effects of Covid-19. Some of these include the tourism, hospitality, events, transport and retail sectors. As such, the government has responded swiftly with a S$4 billion Stabilisation and Support package to help workers and businesses.
The best way to gauge the effectiveness of this package will be to measure the results down the road. It is important for all businesses to plan ahead after Covid-19 has been fully eradicated. One tangible result of a good Budget would be if we achieve this year GDP growth higher than 0.5 per cent, which is the Ministry of Trade & Industry’s current estimate.
To view my thoughts on Business Times, visit this link: https://www.linkedin.com/pulse/silver-bullets-from-budget-mario-singh/
