The 2022 Budget Deficit Shrinks To 2.38 Percent Of GDP, Minister Of Finance Sri Mulyani: Much Better Than The Initial Target Of 4.5 Percent

Illustration (Photo: Doc. Ministry of Finance)

The Ministry of Finance stated that the APBN deficit at the close of the 2022 period was IDR 464.3 trillion or equivalent to 2.38 percent of gross domestic product (GDP).

This figure was recorded based on state revenues of IDR 2,626.4 trillion compared to expenditures of IDR 3,090.8 trillion.

Finance Minister Sri Mulyani said that the realization of the 2022 budget deficit was much better than the initial target which was estimated at IDR 840.2 trillion or 4.5 percent of GDP.

"The deficit has dropped significantly close to the pre-pandemic level," he said during a press conference on Tuesday, January 3.

According to the Minister of Finance, this positive result cannot be separated from two things. First, the increase in the price of Indonesian export commodities which also raised state revenue sources.

"And the second is the ongoing process of national economic recovery and this is evidenced by the stronger tax collection," he said.

For information, the 2022 State Budget is the last period of easing the budget deficit above 3 percent which has been in effect since 2020 as a response to overcome the impact of the COVID-19 pandemic.

Meanwhile, in the 2023 State Budget, the government is required to carry out mandatory budget deficits below 3 percent in accordance with Law Number 17 of 2003 concerning State Finances.

"This illustrates that the APBN will immediately nourish itself to always be ready in maintaining the economy and society," said the Minister of Finance.

To note, the realization of the budget deficit in 2021 is IDR 775.1 trillion. Meanwhile, the deficit in 2020 is IDR 947.7 trillion, and the 2019 deficit before the pandemic is IDR 348.7 trillion.