Government not ruling out further draw on past reserves: DPM Heng

But in the medium to longer term, the approach is to find new ways to generate growth, such that Singapore can build up its reserves again

Janice Heng

Published Thu, Oct 15, 2020 · 09:50 PM

Singapore economy

Singapore

IF A further draw on past reserves is needed for Covid-19 support, the government is prepared to propose it, said Deputy Prime Minister and Finance Minister Heng Swee Keat in Parliament on Thursday.

And while Singapore's fiscal situation will get tighter, the government maintains its stance of funding recurrent spending out of recurrent revenues - which means that the goods and services tax (GST) hike cannot be deferred indefinitely.

Replying to Bukit Panjang Member of Parliament Liang Eng Hwa's question about a further draw on reserves, Mr Heng noted "profound uncertainty on the trajectory of this pandemic and its economic impact".

"We must act early and decisively to support our workers and businesses when needed. I am prepared to propose to the President a further draw on our past reser…