2001: $2.7b deficit

2002: $0.2b surplus

2003: $1.8b deficit

GROWTH in Singapore started to slow in 2001 amid signs of a weaker United States economy and electronics demand.

Still, when the Government released its Budget in February that year, it was so generous that it took observers by surprise - and sparked talk of a coming election.

Both corporate and personal income taxes were reduced across the board. Individuals were given a one-off income tax rebate of 10 per cent.

Tax exemptions were given, property taxes were cut, living cost rebates were enhanced, and pensioners were given more money. As in 1998, cigarette taxes were raised.

The downturn snowballed in the following months, and in July, off-Budget measures worth $2.2 billion were unveiled to help workers keep their jobs or find new ones.

Firms received more property tax and rental rebates, and more loans were made available. Grants were given to hire retrenched workers, while the training allowance for jobless workers was raised.

But these measures proved insufficient. The Government then unveiled a massive $11.3 billion package in October.

The package marked the first recession stimulus that focused on individual Singaporeans, with a series of safety nets.

New Singapore Shares were distributed to all Singaporeans, who got further income tax rebates, discounts on stamp duty and lower fuel prices.

Another generous Budget arrived in 2003, as the global outlook turned uncertain due to slowdowns in developed nations and the impending Iraq war.

Economic Restructuring Shares were given out, as were more business cost rebates to companies. Individuals enjoyed the usual living cost rebates, and top-ups in their Special and Medisave accounts.

This article was first published in The Straits Times on January 17, 2009.