For this year, the president has asked that state budget(-wise, there must be) a stress test simulation made (as anticipation) if global conditions do not improveJakarta (ANTARA) - President Joko Widodo gave directives to his ministers to conduct the state budget stress test to anticipate the negative impacts of increasing global economic turmoil.
"For this year, the president has asked that state budget(-wise, there must be) a stress test simulation made (as anticipation) if global conditions do not improve," Finance Minister Sri Mulyani Indrawati said after a plenary cabinet session regarding the Financial Note and the 2023 Draft State Budget at the Presidential Palace Complex here on Monday.
The state budget stress test is conducted, so that the domestic economy could be protected and the fiscal budget in the state budget could function as usual, she pointed out. The test was being finalized by the Finance Ministry.
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“This is what we are continuing to finalize. Earlier, we prepared several scenarios about the conditions for next year regarding whether the turmoil was greater than what we assumed," she stated.
During the plenary cabinet session, the president had given directives to ministers for the preparation of the 2023 Draft State Revenue and Expenditure Budget. The draft and the financial notes would be relayed officially by the president to the House of Representatives on August 16, 2023.
Minister Indrawati noted that usually, the 2023 draft state budget was designed to be flexible, so it would be able to manage the current economic turmoil, acting akin to a shock absorber. However, the government was still formulating the 2023 draft state budget as a credible and sustainable fiscal instrument.
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The government had set several budget priorities in the 2023 draft state budget, including for the development of human resources; infrastructure development, including for the Nusantara Capital City; and the 2024 General Election series.
"We will utilize central and regional expenditure instruments to be able to support various national priority programs, and in terms of financing, such as the accumulation of the education endowment fund that will be managed as a legacy for future generations as well as the shock absorber mechanism," she concluded.
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Translator: Indra Arief P, Mecca Yumna
Editor: Fardah Assegaf
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