Highlights of Budget 2009

By now I am sure everyone must have heard of the government package as announced on the Budget 2009. With the estimated economic growth of 5% to -2% in 2009, Singapore is expected to face the worst ever recession. In preparation of that, the main priority of the government is to save jobs with measures like Job Credits to help employers survive the ongoing crisis.

The other key focus of the Budget 2009 is to stimulate lending between banks amidst the credit crunch whereby loans are hard to get approved. Small Medium Enterprises (SME) are expected to benefit from the government moves to take on additional risks from their loans withdrawn at banks.

The other government initiatives are property tax rebate and corporate tax reduction to enhance cash flow in businesses, and double GST credits and personal income tax rebate to help Singaporeans. Finally the government is also spending on building infrastructures and upgrading of our country education system.

All in all, the measures will cost S$20.5 billion of which S$4.9 billion are to be withdrawn from our country reserves. The tables below highlight the key measures in summary as compiled by OCBC Investment Research group.