Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati is targeting to keep the state budget deficit in the range of 2.45 percent to 2.82 percent of the gross domestic product (GDP) in the 2025 budget year.

"The fiscal deficit is estimated to be in the range of 2.45–2.82 percent of the GDP," she informed during a plenary meeting of the House of Representatives (DPR) regarding the government's delivery of the macroeconomic framework and principles of fiscal policy here on Monday.

Meanwhile, state revenue in 2025 is expected to be in the range of 12.14 percent to 12.36 percent of the GDP. The policy to optimize state revenue will be carried out while maintaining the investment and business climate as well as environmental sustainability.

This will be achieved in three ways: implementing the Law on Harmonization of Tax Regulations, which is healthier and fairer; expanding the tax base; and increasing taxpayer compliance.

At the same time, the government will also be providing measurable fiscal incentives in various strategic sectors to support economic transformation acceleration.

Meanwhile, to strengthen non-tax state revenue, the government is focusing on optimizing natural resources management, governance improvement, and public service innovations, as well as encouraging reforms in the management of state assets.

Furthermore, in the 2025 state budget, state spending is projected to be around 14.59 percent to 15.18 percent of the GDP.

The state spending policy is directed at strengthening efforts to bring about better spending, which can be achieved by pursuing efficiency in non-priority spending, strengthening productive spending, ensuring the effectiveness of subsidies and social assistance, as well as bolstering social protection to accelerate the alleviation of poverty and inequality.

In the provision of subsidies and social assistance, the minister informed, data accuracy improvement, distribution mechanism improvement, and synergy between relevant programs will be pursued.

The government will also bolster synergy and harmonization of the policies of central and regional governments to push productive spending.

Meanwhile, to close the deficit, the government is encouraging innovative, wise, and sustainable financing.

Furthermore, Indrawati also assured that the debt ratio will be kept within a manageable range of 37.98 to 38.71 percent of the GDP.

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Translator: Imamatul Silfia, Raka Adji
Editor: Arie Novarina
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