The small city-nation of Singapore is looking to turn its economy around quickly with its newly unveiled budget. Looking at the largest recession in its short history, the budget comes in at approximately 6 percent of GDP, which is the country’s largest every. It is targeted to helping those hurt by the recession as well as cutting corporate taxes to a maximum of 17 percent.
The decrease in taxes is designed to help attract foreign investors as well as aid companies that are struggling. Singapore also announced a £9.5 billion (US$13 billion) package to help save jobs and companies. Some 10,000 jobs were lost in the economy in 2008, and it is hoped that this package will help to stem that tide and turn things around quickly.
“This will not get us out of recession,” Finance Minister Tharman Shanmugaratnam told Parliament. “But it will help avert an even sharper downturn, and more lasting damage to the economy.”
Singapore has vast financial reserves and some of these will be tapped for more than $3 billion of recession relief measures. In addition to businesses, there will be aid to families through direct cash payments and tax rebates.
