SINGAPORE — The Government’s operating revenue for this financial year is projected to be S$63.7 billion, 7.4 per cent lower than the estimate presented during the Fortitude Budget in May by Deputy Prime Minister Heng Swee Keat. 

It is also 16.1 per cent lower than the initial estimate presented at the very first Budget in February, before the Covid-19 pandemic spiralled out of control globally. 

However, despite the drop in operating revenue, the overall budget balance is expected to come in at a deficit of S$74.2 billion — a S$0.1 billion improvement from the estimates in May. 

This is due to lower expenditure arising from project delays and programme cancellations or deferments due to Covid-19, as well as lower manpower costs as civil servants will receive lower annual bonuses this financial year. 

The total expenditure for the financial year 2020 is projected to be at S$102.1 billion, 7.6 per cent lower than the revised estimate presented at the Fortitude Budget.

Speaking in Parliament on Monday (Oct 5) on the fifth set of relief measures to help businesses and individuals impacted by the pandemic, Mr Heng, who is also Finance Minister, said that the challenging fiscal position is expected to continue in Budget 2021. 

“Revenue collections are expected to fall across all categories of revenue. For example, compared to the estimates at the start of the year, we expect Goods and Services Tax collections to be down by 14 per cent.  

“We expect our revenue position to be weak for a number of years, as the effects of Covid-19 on the global economy linger, and our economy slows. At the same time, our expenditure will rise as we continue to provide support for our people and businesses.” 

The Government has so far dedicated close to S$100 billion to support people and businesses, he said.  

The fifth round of measures, which was announced by him in August, will cost the Government another S$8 billion but will not require a draw on past reserves. 

Mr Heng had earlier said that the money will be funded by reallocating expenditures that had been earlier planned in other areas. 

The total draw on reserves remains at S$52 billion, he added.