Metrics Determining Introduction and Sizing of Support to Businesses and Households, and Flexibility within Existing Budget without Drawdown on Past Reserves

Mr Saktiandi Supaat asked the Prime Minister and Minister for Finance (a) as the war in the Middle East approaches the two-month mark, what metrics are being applied to determine the introduction and sizing of support to (i) businesses and (ii) households; and (b) whether there is flexibility in the existing Budget 2026 to provide further support without the need for a supplementary Budget or a drawdown on Past Reserves.

The Government had announced a $1 billion support package in April to move early and cushion the immediate impact of the Middle East crisis. We continue to monitor developments closely and will consider further support based on how the situation evolves. In doing so, we track a range of indicators. These include macroeconomic indicators, like gross domestic product growth and inflation, as well as crisis-specific indicators like global oil and fuel prices, and supply chain conditions. We also closely assess the impact of the crisis on different groups, so that any support can be targeted and effective.

Working within the sums approved in the Supply Act for Budget 2026, the Government has the flexibility to reallocate resources to meet emerging needs. Should we need to exceed the provisions in the Supply Act, we can tap on an advance from the Contingencies Funds or table a Supplementary Supply Bill. At this stage, we do not expect to draw on Past Reserves.