We are optimistic that the deficit will be closer to four percent by the end of 2022.Jakarta (ANTARA) - State budget deficit in 2022 is forecast to approach four percent, lower than the targeted 4.85 percent of the gross domestic product (GDP), at Rp868 trillion (US$60.5 billion), Finance Minister Sri Mulyani Indrawati stated.
"We are optimistic that the deficit will be closer to four percent by the end of 2022," the minister noted at the 2022 Mandiri Investment Forum here, Wednesday.
According to Indrawati, the 2022 budget was, in fact, designed to continually support the recovery process, though simultaneously, it was necessary for the government to achieve fiscal consolidation.
The government has the task of realizing fiscal consolidation in 2023 to restore the budget deficit to below three percent after being allowed above three percent as a countercyclical measure to the impact of the COVID-19 pandemic.
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Hence, it has started to restore the deficit by increasing state revenues whilst staying disciplined in spending, so that the deficit can be brought down, the minister explained.
However, Indrawati emphasized that this year's spending will continue to support priority programs encompassing human resource development, educational reforms, and social protection.
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According to the minister, improving the quality of human resources would support the recovery process, with improved competitiveness and productivity.
In addition, state budget spending would be directed to the development of infrastructure, both physical and digital, as well as for tourism and food security.
Indrawati believes these are important areas for Indonesia to recover and build the economy with a stronger and more solid foundation.
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Translator: Astrid F Habibah, Sri Haryati
Editor: Fardah Assegaf
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