SINGAPORE: Finance Minister Tharman Shanmugaratnam said Tuesday the budget deficit expected for Financial Year 08 will possibly be three times larger than the estimated S$800 million.
In a written reply to questions to Parliament released Tuesday morning, Mr Tharman said that the government will not seek to reduce the deficit by trimming government expenditures or raising revenue.
He said the larger deficit is "an appropriate fiscal stance" in the context of an economy that has entered a slowdown.
Mr Tharman said the government has raised expenditures this year to allow for a more expansionary budget in the current economic environment.
Singapore is in a technical recession after two consecutive quarters of negative growth.
The government has promised early measures to help companies in the slowdown, expected some time this week.
Budget Day was also moved forward to January next year, from the usual February date.
- CNA/yb
Source : http://www.channelnewsasia.com/stories/singaporebusinessnews/view/390574/1/.html
In a written reply to questions to Parliament released Tuesday morning, Mr Tharman said that the government will not seek to reduce the deficit by trimming government expenditures or raising revenue.
He said the larger deficit is "an appropriate fiscal stance" in the context of an economy that has entered a slowdown.
Mr Tharman said the government has raised expenditures this year to allow for a more expansionary budget in the current economic environment.
Singapore is in a technical recession after two consecutive quarters of negative growth.
The government has promised early measures to help companies in the slowdown, expected some time this week.
Budget Day was also moved forward to January next year, from the usual February date.
- CNA/yb
Source : http://www.channelnewsasia.com/stories/singaporebusinessnews/view/390574/1/.html