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✉news BusinessEconomy first seen 5 h ago, last 54 min ago, peak #20

Indonesia's 3% deficit cap: guardrail or growth barrier?

Original: Indonesia’s 3% deficit cap: guardrail or growth barrier?

A debate is under way over Indonesia's legal cap limiting the budget deficit to 3% of GDP. Supporters view the rule as a fiscal guardrail that keeps debt credible after years of pandemic-era slippage, while critics argue it constrains spending needed for infrastructure, welfare and growth. The discussion, highlighted by regional coverage, reflects broader questions about whether fiscal discipline or flexibility should take priority in emerging economies.

Why now: Ongoing debate over whether Indonesia should relax its statutory deficit limit to fund growth-focused spending.

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