We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

[Policy Brief] Maintaining Fiscal Sustainability during the Pandemic Crisis

Date:
24 June 2020
Category:
-
Topics:
COVID-19

Share Article:

Print Article:

Key Messages

  • Plummeting demand for goods and services, caused by the sudden disruption in major economic activities, has set the stage for a worldwide economic downturn. As production facilities remain intact, we need a bold fiscal and monetary intervention to revive demand.
  • Policies have focused initially on keeping people healthy, then on minimising economic loss and restoring growth as soon as possible. This requires huge amounts of funds, which many countries have obtained by borrowing. Hence, such policies need to be accompanied by plans to repay the debt without jeopardising future growth.
  • Future fiscal risks include public budgets with low tax revenues, high social spending, and huge debts. Thus, the principles guiding fiscal policies during the pandemic crisis should be cautious borrowing and wise spending.
  • As a regional cooperation mechanism, ASEAN can use its economic network and connectivity to explore new goods and services for trading and improving people’s welfare. A concerted regional effort would multiply regional demand.

Maintaining Fiscal Sustainability during the Pandemic Crisis

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Publications

14 March 2024
Editor(s)/Author(s):
Seiya Endo, Soichi Morimoto, Hideaki Obane, Kei Shimogori, Ichiro Kutani, Toshiyuki Sakamoto, Shigeru Kimura
Achieving carbon neutrality involves the strategic selection of low or zero-carbon fuels and[...]
Mitigating Extreme Volatility of LNG Prices in ASEAN: Impacts of High LNG Prices on Southeast Asia
Energy, LNG, liquefied natural gas, LNG prices, Southeast Asia, ASEAN
14 March 2024
Editor(s)/Author(s):
Han Phoumin, Hiroshi Hashimoto
Between 2020 and 2023, the liquefied natural gas (LNG) market[...]