The Ministry Of Finance Estimates That The 2023 State Budget Deficit Will Be Below 2.3 Percent

JAKARTA - The Ministry of Finance estimates that the 2023 State Revenue and Expenditure Budget deficit (APBN) will be below 2.3 percent of gross domestic product (GDP), amid global economic uncertainty.

Previously, in the first semester of 2023 report, the government had made an estimate that the APBN deficit would reach 2.3 percent of GDP or lower than the previous estimate which reached 2.8 percent of GDP.

For information, the State Revenue and Expenditure Budget (APBN) recorded a deficit in October 2023 of IDR 700 billion or 0.003 percent of gross domestic product (GDP) after 9 months of experiencing a surplus.

The realization of state revenues consisting of taxes, customs and excise, and non-tax state revenues (PNBP) amounted to Rp2,240.10 trillion or reached 90.9 percent of the target or grew 2.79 percent compared to the same period last year.

Meanwhile, the realization of state spending reached IDR 2,240.8 trillion or 73.2 percent of the ceiling.

This figure contracted 4.68 percent compared to the same period last year.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu) Febrio Nathan Kacaribu said in a temporary report on the 2023 State Budget in the first semester of 2023, estimated that the state budget deficit was around 2.3 percent.

However, by looking at the solid domestic economic situation, he is optimistic that the 2023 State Budget deficit will be below 2.3 percent of GDP.

"When we issue Lapsem, the deficit outlook is 2.3 percent, With the current dynamics, our deficit opportunity is lower than 2.3 percent, it looks more real," Febrio said in a press conference on our State Budget, Friday, November 25.

Febrio said the optimism arose because in terms of spending performance, it remained strong in supporting economic recovery and supporting public consumption.

This can be seen both naturally from economic growth, as well as from the government's side who see the needs of the community.

"Social assistance in the context of El Nino and also commodity prices, this is then the dynamics which are then reflected in the state budget," he said.

Febrio said, in the midst of the dynamics of the global economy such as geopolitical conflicts and China's economic weakening, the Indonesian economy is still solid.

"This uncertainty is reflected in commodity prices and policy interest rates that greatly affect global macro conditions, and the domesticity is more or less influenced," he said.

According to him, the APBN is ready with various uncertain conditions and will anticipate and adjust the current conditions.

"Our state budget is forward looking so that it is anticipatory and this has been proven that in terms of revenue it is better than the APBN that we have prepared," he explained.