We want to emphasize that the government will continue to maintain the quality of spending as a trigger to accelerate economic transformation in 2023, even with a lower deficitJakarta (ANTARA) - A healthier budget deficit in the next year would not hinder the role of state spending to boost economic growth, according to Finance Minister Sri Mulyani Indrawati.
"We want to emphasize that the government will continue to maintain the quality of spending as a trigger to accelerate economic transformation in 2023, even with a lower deficit," the minister stated at the House of Representatives' (DPR's) Plenary Meeting here on Tuesday.
Indrawati remarked that this aligned with the government's commitment to maintaining the spending quality to achieve economic transformation in 2023 despite the budget deficit being set lower than this year.
For next year, the budget deficit will be lowered to a level of between 2.61 percent and 2.9 percent of the gross domestic product (GDP) in line with the government policies related to fiscal consolidation in 2023.
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Meanwhile, state spending in 2023 is projected to reach 13.8 percent to 14.6 percent of the GDP that is directed at producing quality outputs or outcomes, Indrawati stated.
State spending in 2023 is also expected to provide tangible benefits to the community and the economy as well as encourage conditions in a better direction.
In line with this, the government will consistently strengthen spending through the implementation of zero-based budgeting that is oriented towards national development goals and targets.
The minister remarked that state spending highlights promoting economic growth and equitable development, alleviating poverty, reducing inequality, expanding job opportunities, increasing productivity, and boosting the people's purchasing power.
Hence, state spending policies are focused on improving the quality of human resources (HR), accelerating infrastructure development, strengthening the implementation of bureaucratic reform, and supporting industrial revitalization and green economic development.
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In line with this, debt, as a fiscal instrument to accelerate the achievement of targets, will still be managed prudently and sustainably.
Debt risk mitigation is conducted by maintaining debt ratios within controllable limits, issuing debt opportunistically, and carefully exploring the market to create more efficient cost of funds in an effort to reduce the debt burden of the state budget.
The government also continues to encourage innovative financing by empowering the role of the private sector, State-Owned Enterprises (SOEs), and the Public Service Agency (BLU).
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Translator: Astrid Faidlatul H, Resinta S
Editor: Fardah Assegaf
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