19 Aug 2025 | News & Feature

TFP W34 2025: 2026 State budget: Consolidation and centralization

  • The government’s high tax growth target hinges upon tax base expansion and potential tax code adjustment combined, along with higher NGDP growth.
  • The government allocates more funds for its eight key priority programs. However, the spending budget remains conservative due to lower regional transfers and village funds.
  • The deficit-to-GDP ratio remains prudent at 2.48%, but higher expected SBN net issuance may constrain deposit growth.