Overview and synthesis

Mobilizing Taxes for Development

“…While the general government revenue in emerging and developing Asia dropped from 25.0% of GDP in 2019 to 23.6% in 2020, total expenditure increased from 30.7% to 32.6% in the same period, resulting in the higher government outstanding debts at 73.3% of GDP in 2022 compared with 58.9% in 2019. 1 In some economies, debt has reached uncomfortable levels and is projected to rise further in the coming years (Ferrarini, Giugale, and Pradelli 2022). Many governments will require fiscal consolidation to ensure fiscal sustainability (Blanchard, Felman, and Subramanian 2021;Favara, Minoiu, and Perez-Orive 2021;Kose et al 2021).…”

Developing Asia's fiscal landscape and challenges

“…For developing Asia as a whole, average public gross debt rose from 51.9% of GDP in 2019 to 65.3% in 2021 (footnote 1). While debt levels in many developing Asian economies remain low by global standards, in some, it has reached uncomfortable levels and is projected to rise further in the coming years, continuing an upward trend that proceeded the pandemic (Ferrarini, Giugale, and Pradelli 2022). A further concern is that, even if public debt levels are relatively modest, private debt in many economies in the region is more substantial and continuing to rise.…”