Minister Of Finance Sri Mulyani Targets State Budget Deficit In Range 2.45-2.82 Percent

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Ministry of Finance)

Minister of Finance Sri Mulyani Indrawati targets the deficit in the State Revenue and Expenditure Budget (APBN) for the 2025 fiscal year to be in the range of 2.45-2.82 percent of Gross Domestic Product (GDP).

"The fiscal deficit is estimated to be in the range of 2.45-2.82 percent of GDP," Sri Mulyani said at the DPR Plenary Meeting on Government Submission to the Macro Economic Framework and Fiscal Policy Principles in Jakarta, quoted from Antara, Monday, May 20.

State revenue is pegged at around 12.14 percent to 12.36 percent of GDP. The policy of optimizing state revenue (collecting more) is carried out while maintaining the investment and business climate and environmental sustainability.

This was taken in three ways, the implementation of the Law on Harmonization of Tax Regulations (HPP) which is healthier and fairer, expanding the tax base, and increasing taxpayer compliance.

The implementation of the tax base expansion refers to the Global Taxation Agreement, which is through the taxation of multinational corporations that carry out cross-border transactions.

Meanwhile, increasing taxpayer compliance is carried out with regional-based supervision, technology integration, and strengthening synergies between agencies/agencies.

The government provides fiscal incentives in a directional and measurable manner in various strategic sectors in order to support the acceleration of economic transformation. Meanwhile, the strengthening of PNBP is carried out through optimizing natural resources management, improving governance, innovation of public services, and encouraging reform management of state assets.

On the other hand, state spending is estimated in the range of 14.59 percent to 15.18 percent of GDP.

The state spending policy is aimed at strengthening spending better, which is pursued through efficiency of non-priority spending, strengthening productive spending, effectiveness of subsidies and social assistance, as well as strengthening empowerment-based social welfare for the acceleration of poverty alleviation and inequality.

Regarding subsidies and social assistance, the Minister of Finance said that there would be an increase in data accuracy, improvement of distribution mechanisms, and synergy between relevant programs.

The government will also strengthen the synergy and harmonization of central and regional policies for productive and independent spending quality.

The efforts made to cover the deficit are to encourage innovative, wise, and sustainable financing.

A number of the steps referred to include encouraging the effectiveness of investment financing, utilizing SAL to anticipate uncertainty, increasing access to financing for low-income communities (MBR) and MSMEs, and encouraging continuous cooperation between governments and business entities (KPBU).

The Minister of Finance also ensured that the debt ratio would be controlled within managed limits in the range of 37.98 to 38.71 percent of GDP.