ASEAN+3 Fiscal Developments Remain Resilient Amid Continued Energy-Shock Uncertainty
In the September quarterly update of the ASEAN+3 Quarterly Fiscal Bulletin, fiscal revenues strengthened across most ASEAN+3 economies, supported by resilient economic activity, while government spending continued to reflect policy responses to the energy shock arising from the Middle East conflict.
Revenue collection recorded positive year-on-year growth in most economies, driven by stronger income and consumption taxes. Corporate income tax collections benefited from improved corporate earnings—particularly in economies benefitting from the AI-driven semiconductor upcycle. Stronger labor income and asset-market activity also supported personal income tax revenue, while resilient domestic demand helped sustain consumption tax collections. Expenditure continued to increase, driven mainly by energy-related support and social programs, while capital spending remained constrained in several economies by implementation bottlenecks.