Fiscal policy has played a big role in the economic recovery from COVID-19. Governments across Asia and the Pacific began rolling out stimulus measures early on and enhanced them as the pandemic unfolded.

Policies have varied depending on the challenges each country faces, with measures ranging from increased public spending on health to enhanced unemployment benefits, business investment incentives, and direct cash transfers to the most vulnerable.

Governments have also granted tax relief. For instance, the People's Republic of China introduced personal income tax exemptions for bonuses and subsidies paid to health care staff, tax waivers, and bigger tax refunds.

Indonesia waived income taxes for manufacturing workers earning 200 million rupiah or less per year and lowered the corporate income tax rate.

With developing Asia's regional GDP growth is projected to rebound to 7.3% in 2021, now is the time to plan to rebuild balance sheets and make sure tax policies are sustainable.

A version of this article appears in the print on May 6, 2021, of The Himalayan Times.