Indonesia expects 2022 fiscal deficit to shrink to 4.3% of GDP: Report

6 months ago 78

Indonesia's fiscal deficit this year is expected to shrink to 4.3% of gross domestic product, narrower than the 4.85% initially predicted, media reported, citing the finance ministry's head of fiscal policy office.

A smaller fiscal deficit means the government could reduce its bond issuance target for 2022.

An uptrend in commodity prices already gave some windfall revenues for Southeast Asia's largest economy last year, which helped the government to sharply reduce the 2021 budget deficit to 4.65% of GDP, from a 5.7% gap approved by parliament.

Finance ministry official Febrio Kacaribu told a briefing new tax measures passed in October, such as the valued added tax hike, a higher tax rate for the high income earners, the cancellation of corporate tax cut and a tax amnesty programme, would boost 2022 revenue collection, media reported.

The government also expected a stronger economic recovery from the COVID-19 pandemic and high commodity prices to support 2022's tax take, Febrio was cited as saying.

(Reporting by Gayatri Suroyo; Editing by Martin Petty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Read Entire Article