Deficit Financing Becomes a Challenge for Government
The government has set the deficit in the 2022 draft state budget (RAPBN) at 4.85 percent of gross domestic product (GDP).
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Finance Minister Sri Mulyani gave a statement to reporters after attending the DPR Plenary Meeting at the Parliament Building Complex, Senayan, Jakarta, Thursday (20/5/2021). The plenary meeting contains the government\'s delivery agenda on the Macroeconomic Framework and the Principles of Fiscal Policy for the 2022 State Revenue and Expenditure Budget (RAPBN).
JAKARTA, KOMPAS — Financing the budget deficit has become a challenge that the government has to cope with amid efforts to recover the economy from the COVID-19 pandemic. Therefore, the reallocation of the state budget should be focused on priority programs that have a multiplier effect on recovery.
The government has set the deficit in the 2022 draft state budget (RAPBN) at 4.85 percent of gross domestic product (GDP). The target is in line with the government\'s fiscal consolidation program to cut back the deficit to a maximum 3 percent of GDP in 2023.