www.bloomberg.com
Based on a forecast by Citigroup Inc., Indonesia’s fiscal deficit is expected to exceed legal limits this year. The government is increasing spending on two major initiatives: a nationwide free meals program and reconstruction efforts in Sumatra’s flood-damaged provinces. While these projects aim to boost welfare and infrastructure, they impose significant strain on the state budget. Investors are closely monitoring the situation, concerned that the deficit breach may challenge fiscal discipline and prompt adjustments in economic policy.
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