In Addition To Restoring The Economy, Sri Mulyani Focuses On 2022 Work For The Restructuring Of The State Budget

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the challenge of recovery will still be the government's main work in reviving the national economy. In addition, he also said that this must be balanced with the ability to restore the State Revenue and Expenditure Budget (APBN).

The reason is that the State Budget in the past two years has become the main key in dealing with pressures due to the COVID-19 pandemic. For this reason, the government, called the Minister of Finance, is committed to bringing state financial instruments to the best level starting next year.

"Next year with a 4.85 percent deficit (budget), we must continue to support the economic recovery by also paying attention to fiscal consolidation which must go hand in hand without weakening each other," he said in a webinar, Wednesday, September 29.

According to the Minister of Finance, a number of important steps have been taken by the government to restore the state budget, including financing innovations with a cooperation scheme between the government and business entities (KPBU). Then, forming a sovereign wealth fund (SWF) called the Investment Authority (INA), and also establishing a special mission vehicle (SMV) in the form of a BUMN under the Ministry of Finance.

"Through this strategy, we will control our debt and become healthy again," said the Minister of Finance.

For information, under normal circumstances the constitution mandates that the budget deficit (APBN) be maintained not exceeding 3 percent of gross domestic product (GDP).

After the COVID-19 pandemic hit the country, the government and parliament agreed to widen the deficit above 3 percent as stated in Law (UU) No. 2 of 2020 concerning State Finances.

Just so you know, this year's APBN is known to have an imbalance of IDR 1,006,4 trillion or 5.7 percent of GDP. This condition occurred due to the higher state expenditure with IDR 2,750 trillion compared to the revenue sector which was IDR 1,743.6 trillion.

As for the 2022 State Budget Bill, the government and the House of Representatives compactly set a budget deficit of Rp.868.02 trillion or 4.85 percent of GDP. The amount was obtained from the projected spending next year of Rp2,714 trillion and income of Rp1,846 trillion.

Meanwhile, for 2023, the government is required to compile a state budget with a deficit back below 3 percent in accordance with the provisions contained in Law No. 2/2020.