Returning To The Initial Rules, The Government Pegs A 2023 Budget Deficit Of 2.61 Percent To 2.90 Percent

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani has officially announced that the budget deficit for the 2023 period is set in the range of 2.61 percent to 2.90 percent.

This was stated by the Minister of Finance when conveying the macroeconomic framework and the main points of fiscal policy in the 2023 State Revenue and Expenditure Budget Plan (RAPBN) at the House of Representatives (DPR) Plenary Session.

According to her, the Government Regulation in Lieu of Law (Perppu) No. 1 of 2020 or Law no. 2 of 2020 has provided a sound and credible foundation by mandating that the fiscal deficit return to a maximum of 3 percent of GDP in 2023.

"The widening of the fiscal deficit for 3 years above 3 percent of GDP has proven to be able to answer the need for handling extraordinary and complex crises in a disciplined, credible and accountable manner, while maintaining the principles of prudence and medium-term sustainability," she said at the Senayan Parliamentary Complex, Jakarta, on Friday, May 20.

As is known, during the 2020 to 2022 pandemic, the constitution provides space for the fiscal to widen the deficit above 3 percent of GDP to cope with the impact of COVID-19.

"Fiscal consolidation efforts in 2023 are accompanied by comprehensive fiscal reforms in terms of income, spending improvement (spending better) and encouraging productive and innovative financing," she said.

Furthermore, the state treasurer explained that a healthy State Budget (APBN) is a solid capital to continue to support economic development and improvement.

"Fiscal policy in 2023 is designed to be able to respond to economic dynamics, answer challenges, and support the achievement of development targets optimally," she concluded.