Patching The State Budget, The Government Plans To Withdraw IDR 973 Trillion Of Debt In 2022

Illustration (Photo: Doc. Antara)

JAKARTA – Minister of Finance, Sri Mulyani, said that the government will finance the debt of IDR 973 trillion throughout 2022. Later, most of the funds will be used to cover the deficit in the 2022 State Budget which is projected to reach IDR 868 trillion.

"Budget financing is carried out using efficient, innovative, and prudent financing sources", he said in a Virtual press conference, Monday, August 16.

According to the Minister of Finance, the budget financing policy is prepared within the framework of fiscal consolidation and budget refocusing.

"We believe that the debt financing target will continue to be controlled and decrease", he said.

On the other hand, investment financing is provided selectively based on priority sector considerations, government assignments, economic benefits, and social benefits.

"In 2022, investment financing of IDR 182.3 trillion will be focused on investment in infrastructure, education, community protection, and international cooperation", he said.

To note, state expenditures in the 2022 RAPBN (State Revenue and Expenditure Budget Plan) are planned at IDR 2,708.7 trillion, which includes central government spending of IDR 1,938.3 trillion and transfers to regions and village funds of IDR 770.4 trillion.

Meanwhile, state revenues in 2022 will be IDR 1,840.7 trillion, consisting of tax revenues of IDR 1,506.9 trillion and Non-Tax State Revenues (PNBP) of IDR 333.2 trillion.

That means the budget deficit will touch IDR 868 trillion or 4.85 percent of gross domestic product (GDP).

“To support the socio-economic recovery towards normal conditions, a consolidative expansionary fiscal policy strategy is needed which is reflected in the budget deficit of 4.85 percent of GDP. This deficit figure will gradually return to its normal level, which is 3 percent in 2023", closed the Minister of Finance, Sri Mulyani.