atans1

Cheat sheet for Fortitude Budget/ Hali tied of signing?/ Peanuts?

In Economy, Public Administration on 28/05/2020 at 5:15 am

Confused by the reporting of the constructive, nation-building media (“The PAP cares, they really do”) and anti-PAP alt media (“Kanna con” or “Give chicken’s head and take back the whole chicken”) on what the Fortitude Budget is all about? After all we got this yr

–‘Unity Budget’ (February 18): S$6.4 billion

— ‘Resilience Budget’ (March 26): S$48.4 billion. S$17 billion drawn from reserves

— ‘Solidarity Budget’ (April 6): S$5.1 billion. S$4 billion drawn from reserves

–S$3.8 billion economic stimulus (April 21), alongside extension of lockdown. Yes this had no name.

Now on May 26 got ‘Fortitude Budget’ worth S$33 billion, S$31 billion drawn from reserves. But S$13 billion is for “Contingencies Funds”: I suppose Hali doesn’t want to keep raiding the reserves?

So what’s in it?
— Jobs Support Scheme extended by one month until November, with firms that cannot reopen – such as shops, gyms and cinemas – to get 75 per cent wage support until August or when they are allowed to reopen
— S$2 billion for the SGUnited Jobs and Skills Package to create 40,000 jobs, 25,000 traineeships and 30,000 skills training opportunities
— S$800 million for the Covid-19 Support Grant to give to those who lose their jobs because of the crisis
— S$18 million for social service agencies to maintain service continuity, retain staff, and adopt technology
— S$13 billion in the Contingencies Funds so the government can respond quickly to unforeseeable developments arising from the pandemic.

Whatever, all the budgets means the government’s total fiscal injection will be S$92.9 billion, almost one-fifth of the country’s S$500 billion economy. Only Germany and Japan spend more than us when it comes to pandemic stimulus packages as a percentage of GDP. Germany 31.6% and Japan 19.6%.

The government has so far drawn down S$52 billion from our reserves to fund the packages.

Impressive?

“Peanuts”: our reserves estimated to be worth over US$710 billion or S$1 trillion by ang mohs. Only 5% of our reserves drawn down and do remember that S$13 million is for “contingencies”. Exclude that S$13 million and only 4% of reserves will be spent.

Bah humbug, a reasonable man may say.

  1. and the counteroffers by the local opposition to all these billions of $$$ ?

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