Singapore government to tap on reserves to fund new budget initiatives.

Written January 22, 2009 in News, Personal

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The Government has made the case to the President and the Council of Presidential Advisers (CPA) for this cost of $4.9 billion to be funded from the past reserves, on grounds that the circumstances we face are exceptional, and the extraordinary measures that the Government is undertaking are temporary and will not be built into longer-term government programmes. The President has given his in-principle approval for this draw of $4.9 billion from past reserves. The President’s assent to the Supply Bill will be obtained after Parliament has passed the Bill.

This is the first time we have sought the President’s approval for an actual draw on past reserves since the Constitutional framework for protection of reserves was instituted in 1991. We had earlier sought the President’s approval in October 2008, when the Government moved to guarantee all bank deposits in Singapore, for the guarantee to be backed by past reserves. However, this remains a potential draw, and the probability of an actual government payout remains low.

Another sacred cow slaughtered. But indeed, if this is not bad weather, what is? Check out full Budget speech here.

Tags: Assent, Bank Deposits, Budget, Budget Initiatives, Circumstances, Constitutional Framework, Parliament, Presidential Advisers, Principle, Probability, Sacred Cow, singapore