# Enhance Structural Reforms and Fortify Fiscal Institutions to Restore Fiscal Policy Resilience

- Link: https://www.thailand-business-news.com/asean/240486-enhance-structural-reforms-and-fortify-fiscal-institutions-to-restore-fiscal-policy-resilience
- Published: 2025-09-07T07:49:00+07:00
- Author: News Desk

**ASEAN+3 economies face fiscal challenges amid global uncertainties, requiring 
a balance between short-term flexibility and long-term discipline. Structural reforms
and stronger institutions are essential for sustained growth.**

## Navigating Fiscal Challenges

ASEAN+3 economies are at a fiscal policy juncture, dealing with global uncertainties
like US trade policy shifts and geopolitical tensions. These factors threaten regional
growth, while narrowing fiscal space and increasing debt burdens necessitate ongoing
fiscal consolidation. Policymakers must balance short-term fiscal flexibility with
long-term discipline to manage external shocks and ensure sustained fiscal health.

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## Embracing Structural Reforms

Structural reforms are crucial for enhancing growth and productivity, complementing
fiscal consolidation efforts. By boosting competition, refining regulations, and
embracing technology, these reforms can counteract demographic pressures like aging
populations. Additionally, reforms can mitigate fiscal consolidation’s typical contractionary
effects by enhancing productivity and competitiveness, though they must also address
potential downsides such as job displacement due to AI adoption.

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## Strengthening Fiscal Institutions

Enhancing fiscal institutions and transparency is vital, especially for lower-income
economies with weaker fiscal structures. A well-crafted medium-term fiscal framework
can aid consolidation and build public trust. ASEAN+3 should pair fiscal adjustments
with institutional reforms to develop robust strategies, assess risks, and implement
policies transparently. Timely structural reforms and stronger institutions will
ensure resilience, sustained growth, and long-term fiscal sustainability.

Source: [Strengthen Structural Reforms and Fiscal Institutions to Rebuild Fiscal Policy Buffers – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/strengthen-structural-reforms-and-fiscal-institutions-to-rebuild-fiscal-policy-buffers)