18 Agt 2023 | News & Feature

The 2024 state budget: Towards the final lap with a tested plan in hand

  • The government adopted a conservative stance in formulating the proposed 2024 state budget, setting the GDP growth target at 5.2% YoY while suppressing the deficits to its lowest level since the pandemic.
  • The proposed state budget seems to have been designed with the assumption that the global disinflation trend would continue. Nonetheless, the enhanced flexibility of the budget should offer some protection if supply shocks result in a renewed inflationary pressures in 2024.
  • Despite the noticeable increase in the infrastructure budget, the government may increase its reliant on domestic consumption to fuel economic expansion in the coming year.