Indonesia: Fiscal Dynamics On A Solid Footing
125 Views, 17 Jan 2022 20:44
- For 2021, the fiscal deficit is projected at 4.65% of GDP, or a full percentage point lower than the budgeted 5.7% of GDP, thanks to heftier commodity royalties.
- An upside surprise to growth and inflation, and looming tax adjustments from April 2022 will guide the fiscal deficit down with revenues on a bounce.
- Risks are twofold. First, parliament could backtrack on fiscal commitments. Second, there is a salient risk of an disorderly evolution of financial conditions because of BI's debt purchases.