Indonesia aims to cut spending, budget deficit in 2022

Workers load cantaloupes into a truck at Pasar Induk Kramat Jati wholesale market in Jakarta, Indonesia on Sunday, May 2, 2021. Indonesia could face a challenging road back to fiscal discipline as the government expects to keep spending heavily to support the economy next year. - Bloomberg

JAKARTA, April 29 (Reuters): Indonesia's 2022 state budget could be smaller than this year's as the government looks to cut its budget deficit and taper pandemic-era fiscal support, senior finance ministry officials have announced.

South-East Asia's largest economy 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 gross domestic product (GDP) starting in 2023.