The October 2018 Fiscal Monitor analyzes Public sector balance sheets (PSBS) across the world. This presentation provides a short primer on this new framework for assessing countries’ public finances, before putting it into action for Indonesia. The analysis starts with the state of Indonesia’s public wealth, then moves to assess the impact of revenue and investment plans that the government is considering. The analysis highlights that tax-financed public investment leads to an accumulation of public sector assets, which in turn support a permanently higher real GDP. PSBS analysis further illustrates how the policy package improves public wealth over the medium term.
