Government spending was less than the initially promised S$100 billion due to underutilization of resources earmarked for potential public health challenges.
SINGAPORE: Over the past two financial years, a total of S$72.3 billion has been spent to combat the COVID-19 pandemic, announced Second Minister for Finance Indranee Rajah in Parliament on Tuesday (Sep 13).
Of this amount, S$13.4 billion was dedicated to public health initiatives. An additional S$50.6 billion was allocated to support measures for workers and businesses, while S$8.3 billion was designated for direct household and social assistance.
This expenditure was lower than the initially committed sum of S$100 billion, as explained by Ms. Indranee in response to a query from Member of Parliament Foo Mee Har (PAP-West Coast).
There were two main reasons for this reduced spending.
First, the Government had allocated loan capital in FY2020 in anticipation of a tight credit market. However, this was ultimately unnecessary, as the Monetary Authority of Singapore introduced a Singapore-dollar facility to provide low-interest capital to participating financial institutions, she elaborated.
Second, resources reserved for public health capacity to address “potential downside scenarios” were not fully utilized, as effective safe management measures and the cooperation of Singaporeans helped prevent severe public health consequences.
Nonetheless, this underutilization of funds was counterbalanced by various support packages rolled out during the heightened alert and stabilization phases from May to November 2021, as infection rates surged, the minister added.
Ms. Indranee also mentioned that the Ministry of Finance (MOF) has initiated a review of the controls and checks related to COVID-19-related procurement and expenditures since the beginning of this year.
“Various agencies are conducting audits on COVID-19-related procurement and expenditures to ensure that transactions are legitimate and that there are no erroneous payments,” she stated.
This review is in addition to the annual audit performed by the Auditor-General’s Office (AGO). The latest AGO report highlighted deficiencies in controls and checks by the Ministry of Manpower, Health Promotion Board, and Singapore Land Authority regarding pandemic-related procurement and expenditures.
“By learning from our COVID-19 experience and the Auditor-General’s report, MOF is reassessing our guidelines on procurement, contract management, and payment processes to ensure that our control measures are suitable for future emergencies,” Ms. Indranee informed the House.
The MOF will also provide an advisory to agencies on adopting best practices and minimizing financial risks during emergencies, she noted.
These recommendations include implementing system checks for grant eligibility, verifying data at the source to reduce manual processing errors, and maintaining thorough documentation of critical decisions, among other measures.
