Image: Reuters Berita 24 English - Due to solid income projections, Indonesia will probably record a budget deficit in 2022 of 732.2 trillio...
 |
| Image: Reuters |
Berita 24 English - Due to solid income projections, Indonesia will probably record a budget deficit in 2022 of 732.2 trillion rupiah ($48.94 billion), or 3.92 percent of GDP, down from an earlier expectation of 4.5 percent of GDP, the country's finance minister said on Friday.
At a hearing with the budget committee of the parliament, Sri Mulyani Indrawati stated that the government would reduce debt issuance from 943.7 trillion rupiah to 757.6 trillion rupiah.
The largest economy in Southeast Asia has been experiencing a surge in exports as a result of rising commodity prices. A rise in government revenue has been spurred by improved export revenues and an economic recovery from the COVID-19 pandemic's effects.
According to Sri Mulyani, the unexpected income will be utilised to reduce the debt issuance target in order to better manage Indonesia's fiscal position in the face of growing international funding costs.
"Our debt issuance has decreased by an incredibly large margin. This serves as a gauge for the exceptionally strong state of our budget "She spoke.
According to the minister's most recent projection, total revenue for the entire year will total 2,436.9 trillion rupiah, which is a 21 percent annual rise and higher than her prior estimate from May.
Additionally, she anticipated some increased spending above May's statistics, including slightly higher subsidies, bringing the overall budget to 3,169.1 trillion rupiah, or almost 14% more than the previous year.
The risks of commodities price cooling later in the year and in 2023 were also mentioned by Sri Mulyani, along with the dangers of rising inflation and higher international interest rates having an impact on local consumption and investment.
In her presentation, she predicted that GDP will expand by 4.9 to 5.4 percent this year, up from 4.8 to 5.5 percent previously.
(1 USD = 14,960,0000 Rp)
