Indonesia sees fiscal deficit of up to 4.85% of GDP in 2022

Credit: REUTERS/ANTARA FOTO

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

JAKARTA, April 29 (Reuters) - Indonesia plans to reduce its budget deficit next year to within a range of 4.51% to 4.85% of gross domestic product, from an estimated 5.7% this year, as part of its fiscal consolidation measures, a finance ministry official said on Thursday.

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.

(Reporting by Tabita Diela; Writing by Gayatri Suroyo Editing by Ed Davies)

((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))

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