The budget deficit will fall more deeply than what we have projected at 4.85 percent of the GDP in the state budget and 4.5 percent of the GDP in the presidential regulation.Jakarta (ANTARA) - The budget deficit is expected to reach Rp732.2 trillion or 3.92 percent of the national gross domestic product (GDP) in 2022, Finance Minister Sri Mulyani Indrawati has projected.
"The budget deficit will fall more deeply than what we have projected at 4.85 percent of the GDP in the state budget and 4.5 percent of the GDP in the presidential regulation," she said during a working meeting with the House of Representatives (DPR) Budget Committee in Jakarta on Friday.
Last year, the budget deficit had topped Rp775 trillion.
The projected decline in the 2022 budget deficit shows that the state budget has become relatively healthier and stronger, in accordance with the strategy of facing the volatile condition, particularly in the financial sector, due to global inflation and interest rate hike, the minister said.
The budget deficit forecast is based on the projected state expenditure of Rp3,169.1 trillion, higher than the state revenue, which is estimated to reach Rp2,436.9 trillion, she added.
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Overall, the state expenditure forecast is quite good because it shows 13.7 percent year-on-year growth compared to last year.
The figure comprised Rp2,370 trillion in central government spending and Rp799.1 trillion in transfers to regions and village funds, Indrawati said.
"The state spending is aimed to give a ‘blanket’ or ‘pillow’ to protect our community from volatility," she added.
State revenues also grew significantly by 21.2 percent year-on-year, comprising tax receipts of Rp1,924.9 trillion and non-tax state revenues of Rp510.9 trillion, she said.
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Translator: Agatha Olivia V, Suharto
Editor: Rahmad Nasution
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