Indonesia to decrease budget deficit in 2022

• Apr 30, 2021

JAKARTA: Indonesia plans to reduce its budget deficit next year to within a range of 4.51% to 4.85% of gross domestic product (GDP), from an estimated 5.7% this year, as part of its fiscal consolidation measures, a finance ministry official said yesterday.

Febrio Kacaribu, who heads the ministry’s fiscal policy office, told a virtual seminar the government would design the 2023 budget with a shortfall within 2.71% to 2.97% of GDP.

Indonesia relaxed its fiscal rules for three years from 2020 to allow for bigger government spending amid the coronavirus pandemic, but has vowed to bring fiscal deficits back to under a legal limit of 3% of GDP in 2023. ─ Reuters