The external risks may have an implication on fiscal pressures.Jakarta (ANTARA) - University of Indonesia (UI) economist Vid Adrison forecast that various external risks may pose a challenge to the drafting and realization of the Indonesian state budget (APBN) in 2023.
"(The external risks) may have an implication on fiscal pressures," Adrison noted in the official statement of the Finance Ministry on public consultations on the state budget bill for the budget year 2023, received in Jakarta on Tuesday.
Adison said the external risks include the energy price hike, overseas inflationary pressure, and declining global economic growth.
The various risks have the potential to affect fiscal pressures through imminent subsidy hike, he remarked.
In addition, the external challenge has the potential to lower the base of tax receipts and raise the state expenditure, he pointed out.
One of the strategies that can be pursued to reduce pressures on the state budget is efficiency, he said.
The other efforts that can be made to increase state revenues are necessitating the use of population identification numbers (NIK) as taxpayer ID and optimizing state revenues from tobacco excise.
In addition to the external risks, lecturer of the UI School of Law Dian Puji Simatupang remarked that the draft 2023 state budget also faced a special challenge, as the budget deficit next year must return to a maximum of three percent of the national gross domestic product (GDP).
Moreover, the 2023 budget deficit must return to three percent of the GDP amid the global economic turbulence.
Essentially, the national economic structural reform may strengthen the state finance management system, so that it will become more effective, transparent, and accountable, he added.
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Translator: strid Faidlatul Habibah. Suhar
Editor: Rahmad Nasution
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