JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara revealed that the deficit in the State Revenue and Expenditure Budget (APBN) is one of the strategies to deal with 2023 which is still full of challenges and uncertainties.
APBN which deficit is our strategy. So it is an option and we choose to implement a deficit state budget so that we can really do productive state spending in front," said Suahasil in an official statement, quoted from Antara, Friday, January 13.
Suahasil said targeted state spending of IDR 3,000 trillion in 2023 will be maximized to encourage the business world to face the high interest rate era.
The hope is that proper fiscal management will be able to encourage the achievement of the 2023 Gross Domestic Product (GDP) target of IDR 21 thousand trillion.
In addition, the allocation of state spending will also be optimized to withstand the impact of inflation, maintain people's purchasing power, strengthen quality spending, improve regional spending quality to encourage growth and welfare, and accelerate development.
"We build faster infrastructure, we build faster bridges, toll roads, and so on. Local government spending in the form of transfer funds to the regions is also to encourage development in areas led by all local governments in Indonesia, so that the deficit budget is our strategy to encourage growth," he said.
However, he said the APBN deficit must be managed carefully so that it remains under control. The positive performance of the 2022 State Budget with a deficit below 3 percent will more quickly achieve fiscal consolidation efforts.
Although according to Law 2 of 2020 the state budget is allowed to deficit above 3 percent until the 2022 fiscal year, Indonesia can close the 2022 fiscal year with the state treasury deficit which is already below 3 percent.
"Now it is in the process of being audited and hopefully later we will believe the 2022 deficit is 2.38 percent of GDP," said Suahasil.
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