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President Halimah Yacob yesterday formally approved the draw of up to $11 billion from past reserves to fund measures needed to fight Covid-19, saying that this would allow Singapore to support workers and businesses as it works towards reopening safely amid the pandemic.
In a Facebook post announcing her approval of the Government's Budget, she added: "While the outlook is still uncertain, I am confident that if we continue to stay united as one, Singapore will come through this crisis stronger and ready for the future."
The Government's spending plans were approved in Parliament on Monday last week, after MPs spent nine days scrutinising the Government's and individual ministries' budgets. This comprised $107 billion of spending in total for the 2021 financial year.
Noting that this is the first time Singapore has had to draw on past reserves in two consecutive financial years, the President said: "Managing a pandemic of such a scale necessitates more resources to mitigate a plunge in our economy. Fortunately for us, our reserves framework provides for us to tap on past reserves in such a scenario, so that the Government can continue to take decisive actions in cushioning the impact of the pandemic on our people."
The $11 billion from the reserves will go towards funding the Covid-19 Resilience Package, which covers public health and safe reopening measures, including the national vaccination programme, continued support for firms and workers, and targeted support for worst-hit sectors like aviation.
Explaining the decision to fund the package by tapping the reserves, Deputy Prime Minister and Finance Minister Heng Swee Keat had said that the measures were extraordinary and temporary. He also said running a fiscal deficit to support targeted relief was warranted in the immediate term.
With the amount approved last year, the total draw on the reserves for the two financial years will come to $53.7 billion.
Madam Halimah said she had consulted the Council of Presidential Advisers before giving her assent to the Supply Bill.
She had also taken into consideration the detailed briefing in January on the Budget by Mr Heng and the Ministry of Finance, and exercised her discretionary power provided for under the Constitution, she added. Her assent paves the way for the Supply Bill to become law, which will control how much the Government is allowed to spend, and on what, in the financial year.
