Home ›› 21 Feb 2023 ›› Asia Biz
Indonesia expects to bring its budget to a narrower fiscal deficit next year, even as its economic growth is predicted to accelerate, senior officials said on Monday, as President Joko Widodo aims to finish its remaining infrastructure projects.
Indonesia recorded a 464.3 trillion rupiah ($30.64 billion) fiscal deficit in 2022, or 2.38per cent of gross domestic product, based on unaudited data, the government said last month, reports Reuters.
It expects a fiscal deficit of 2.84per cent of GDP in 2023 and, according to Finance Minister Sri Mulyani Indrawati, a 2024 state budget deficit in a range of 2.16per cent to 2.64per cent of GDP.
Addressing plans for the state budget spending for next year, Sri Mulyani said challenges for 2024 economic growth include maintaining confidence of consumers and keeping investment momentum strong, as well as anticipating export disruption over geopolitical issues.
“Next year, the budget will be maintained. On the one hand state revenues will grow with an ever-increasing tax ratio and budget spending will be maintained with discipline and in accordance to national agendas,” she said.
Separately, Indonesia’s economy in 2024 is projected to expand between 5.3per cent and 5.7per cent, Susiwijono Moegiarso, secretary of the coordinating ministry of economy, told Reuters on Monday.
Sources of that growth would be investments and household consumption, he said, which accounts for more than half of Indonesia’s GDP.
