Indonesia's COVID-19 crisis to test fiscal discipline commitment
|
|
Indonesia's COVID-19 crisis to test fiscal discipline commitment
本帖最後由 geemong 於 2021-7-27 16:11 編輯
Indonesia's COVID-19 crisis to test fiscal discipline
commitment
Indonesia's worsening COVID-19 crisis is รีวิวเกมสล็อต raising pressure on
the government to lift spending and widen the budget deficit, even as rating agencies
warn any loosening of the country's hard-won fiscal discipline could bode ill for
its credit ratings.
The world's fourth-most populous nation has Asia's second-highest pandemic death
toll and caseload and a slow vaccination programme means it is ill-prepared to
reopen at the same pace as other countries.
That has increased vulnerabilities in an economy that has been badly hit by capital
flight and financial crises in the past.
However, there is now mounting political pressure to address growing economic
hardships with the chair of parliament's influential budgetary committee calling for
legislative changes to allow for larger fiscal deficits in 2023.
"The law still allows for it, so we must aim for 5per cent (of GDP) in 2022. If we go
with 4.5per cent, the economy will not get better," Said Abdullah told Reuters in an
interview. The government currently projects a deficit range of 4.51per cent to 4.85
per cent for 2022.
By law, Indonesia has an annual fiscal deficit cap of 3per cent of GDP, but this was
waived from 2020 to 2022 to make room for pandemic relief measures and would
need to be waived again for 2023 under Abdullah's proposal.
"We can't just abandon social protection programmes even after COVID disappears.
The people won't be ready." |
|
|
|
|
|
