Singapore unveils $3.5 billion in economic spending to combat virus

Singapore announced 5.1 billion Singapore dollars (3.55 billion U.S. dollars) in additional economic spending, such as wage support, waiver of levies and one-off payments, to combat the coronavirus pandemic.

"This is an unprecedented budget for extraordinary times," Finance Minister Heng Swee Keat told parliament on Monday, just over a week after the city-state unveiled more than 30 billion U.S. dollars in new support measures as it braces for its worst recession.

On Friday, Singapore said it will close schools and most workplaces for a month as part of stricter measures to curb a recent jump in coronavirus infections. Singapore has reported a total of 1,309 infections and six deaths from the coronavirus.

Heng said the new measures unveiled in the third budget will increase the total spending on coronavirus relief to 59.9 billion Singapore dollars or 12 percent of gross domestic product (GDP). He said Singapore will draw an additional 4 billion Singapore dollars from its past reserves to fund the new measures.

"The situation remains highly fluid and uncertain. The government stands ready to provide further support should it become necessary," Heng said.

Heng said Singapore's overall budget deficit for the financial year 2020 is expected to increase to 44.3 billion Singapore dollars or 8.9 percent of GDP.

(REUTERS)