AFP -
Tuesday, November
18
SINGAPORE, Nov 18, 2008 (AFP) - Singapore's budget
deficit could be three times larger than initially estimated this
year partly because of the global economic turmoil, the finance
minister said in comments released Tuesday.
The government originally projected a deficit of 800 million
dollars (524 million US) this fiscal year but expenditures are now
expected to be significantly higher than budgeted, Tharman
Shanmugaratnam said.
"We should therefore expect a significantly larger deficit in
FY08 (fiscal year 2008) -- possibly more than three times larger
than the initially estimated 800 million dollars," he said in a
written response to a question raised in Parliament on Monday.
There may be some dampening of revenues in view of
lower-than-expected economic growth and more subdued property
transactions, especially in the last two quarters of the fiscal
year, the minister said.
At the same time, government expenses have risen with an August
announcement that cash handouts to ease the burden of a rising cost
of living would be increased by 50 percent along with electricity
rebates, Shanmugaratnam said.
In August the government also announced a doubling of spending
on incentives to address a severe shortage of babies. These
measures and "higher cost factors in infrastructural projects" have
also contributed to the higher deficit, he said.
"The larger deficit is an appropriate fiscal stance in the
context of an economy that has entered a slowdown," he said. "We
will be able to fund the larger deficit from the surpluses we
accumulated in FY07, when we had unexpectedly higher revenues."
Singapore, which is already in recession, could experience
negative growth next year, Prime Minister Lee Hsien Loong warned on
Sunday.
To help deal with the downturn and to prepare for the future,
the government is bringing forward its budget from February to
January, Lee said. The proposed budget will include measures to
support growth and jobs, strengthen business competitiveness and
stimulate domestic demand, he said.
Singapore, which is already in
recession, could experience negative growth next year, Prime Minister Lee Hsien
Loong warned on Sunday. --- recession? why are the Pay and
Pay still continue to overpay themselves obscene pay since this is
recession??? Greedy, very greedy. Does
recession not apply to the Pay and Pay?
LKY did mention that they have
enough to cope with the recession.
