March 24, 2020 / 7:03 AM / 8 days ago

Indonesia says may need to exceed 3% budget deficit cap to cover virus response

JAKARTA, March 24 (Reuters) - Indonesia’s government may need room for its budget deficit to exceed the 3% legal limit as the country battles the spread of the coronavirus and its economic impact, Deputy Finance Minister Suahasil Nazara said on Tuesday.

He told an investor call that the government is increasing health spending to 1.5% of gross domestic product (GDP) from 0.8% of GDP by reallocating other spending, but he said the government is gearing up for more spending as the virus spreads.

A parliamentary committee has suggested the government raise the cap to 5% of GDP. (Reporting by Fransiska Nangoy, Tabita Diela; Editing by Muralikumar Anantharaman)

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