Bappenas Asks For A 2025 State Budget Deficit To Be Lowered To Have A More Loose Fiscal Space

Minister of National Development Planning/Head of Bappenas Suharso Monoarfa (Photo: Doc. VOI)

JAKARTA - Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa hopes that the deficit in the 2025 State Revenue and Expenditure Budget (APBN) can be lowered to a level of 1.5 percent -1.8 percent. This is necessary so that the next government has a looser fiscal space.

"We hope that the Minister of Finance (Sri Mulyani Indrawati) and Commission XI, if that is agreed upon, we want the deficit to be even lower between 1.5 percent and 1.8 percent so that there is a fiscal space for the government to come if it will use the article," he said in a meeting with Commission XI of the DPR, Wednesday, June 5.

Suharso explained, this figure is a pure idea from him so that the new government has a looser fiscal space.

"This is my pure idea, from Bappenas," said Suharso

According to Suharso, the range of deficits that are within the Macroeconomic Framework and the Principles of Fiscal Policy (KEM-PPKF) 2025 at the level of 2.45 percent-2.82 percent of GDP is the result that has been prepared together with relevant ministries and institutions including Bappenas.

According to Suharso in Article 5 paragraphs 1 and 2 of Law (UU) number 17 of 2007 concerning the National Long-Term Development Plan (RPJPN) 2005-2025, which explains that the current government is required to develop a Government Work Plan (RKP) and APBN for the next new government.

In addition, Suharso conveyed in Article 5 of Law No. 17 of 2007 concerning the 2005-2025 National Long Term Development Plan (RPJPN), namely the new government has room to move to perfect the RKP and APBN through the Revised State Budget (APBN-P) mechanism.

"Yesterday in Banggar, we said that Article 5 is possible, it means that there is a loop hole, there is an opportunity there is a window opportunity for Pak Prabowo to use that article," he explained.

According to Suharso, a lower deficit is needed by the new government so that there is a looser fiscal space in running the program.

"Indeed, we will meet with a team from the tempak, Mr. Prabowo, officially so that we can synchronize it," said Suharso.