The Singapore government has fervently taken upon itself to win the fight against coronavirus not only health-wise but also economically. The losses suffered by the people and the economy at the hands of the COVID-19 pandemic are colossal. In the budget announced in February, the government had expressed the need to fight COVID-19 as a united country. Singapore’s Minister for Finance, Mr. Heng Swee Keat had even termed this budget as ‘Our Unity Budget.’
However, Budget Day 2020 Singapore extended beyond February 18 as the government announced a supplementary budget on March 26, 2020. The purpose of announcing the supplementary budget was to correct the innumerable harms done by COVID-19. The government is referring to this additional resource allocation as the Resilience Budget 2020. The word ‘resilience,’ which had also found a place in the February budget, signifies the government’s resolve to brave the pandemic. This supplementary budget has given a new meaning to both ‘unity’ and ‘resilience,’ given the escalation of circumstances.
What Happened on the Second Budget Day 2020 in Singapore?
The Singapore government has redirected $48.4 billion to the cause of helping its people and businesses recuperate from the COVID-19 aftershock. The announcement came at a crucial time for Singapore. The country has already predicted a major downward trajectory for its economy in 2020, like many other countries.
The supplementary budget brings relief to people from different walks of life in the island nation. It is designed to support businesses so they can come back from COVID-19’s huge blow to the economy. Let us now look at some of the salient features of this budget.
Salient Features of Resilience Budget 2020
The new Budget Day 2020 in Singapore came with several promises that will help the country’s families, workers, and businesses alike. Be they households, self-employed people, or businesses operating at any scale; all have found a place in the Resilience Budget.
Those who have been rendered unemployed in the wake of the COVID-19 situation got a soothing surprise through the budget. Such citizens are now eligible for a monthly government grant of $800 for three months between May and September 2020. People who are in dire need of resources to help their families have access to the government’s temporary relief fund. Vouchers worth $300 will now be given out to those living from hand to mouth so they can purchase groceries.
Small and medium-sized businesses will get help in the form of increased working capital loan limits. Moreover, income tax payments have been deferred for three months across the board. Flexibility on loans has also increased, with students in Singaporean universities getting a big relief. Loan interest charges have been suspended for one year, while mortgage payment charges have been suspended for three months. Property taxpayers will also get support from the government. The budget proposes a 100% property tax rebate for commercial properties such as hotels, shops, restaurants, etc.
The aviation industry now has a big support system in the government, with over $350 million injected as cost relief. Understandably, the industry has come crumbling down to the ground ever since the pandemic laid its roots in the country. Like the disheartening condition of the aviation sector, tourism, land transport, and art industries have also faced the virus’ wrath. The Singapore government has not forgotten these sectors in its new budget. For example, private bus owners will now get a road tax rebate for one year. Their parking charges at government-owned parking areas will also be waived for six months.
How Is Budget Day 2020 Making Singaporeans Resilient?
Above all, making Singapore resilient against the deeply permeating effects of coronavirus is an essential highlight of the budget. To the government, this meant making its people self-sufficient in these times, where social distancing is the norm. Therefore, the supplementary budget has extended support to those willing to devise new working strategies that will reduce physical contact. The arts and culture sector has also been given a budget to bring itself back on track. An essential part of this move is enabling digitalization in this sector so that people can work safely.
Budget Day 2020 has brought some much-needed happiness to Singaporeans even as they are reeling from the coronavirus impact. The government’s good intentions could help the country come out of this disaster much stronger.