Economics

Indonesia’s Budget Deficit to Stay Wide as Tax Reforms Held Back

  • Fiscal shortfall could reach 4.7%-4.8% next year: Indrawati
  • Government could push back planned tax hikes to help economy
WATCH: Indonesian Finance Minister Sri Mulyani Indrawati says she expects the budget deficit to stay elevated next year.(Source: Bloomberg)
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Indonesia’s finance minister expects the budget deficit to stay elevated next year as the nation’s worst coronavirus surge hampers the recovery and efforts to boost state revenue.

The fiscal shortfall could reach 4.7%-4.8% of gross domestic product in 2022, Finance Minister Sri Mulyani Indrawati told Bloomberg Television’s Haslinda Amin. That’s near the top end of the government’s 4.5%-4.85% projection.