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Government Draws up The State Budget for 2023, Setting The Deficit at 2.85%

Tuesday, 16 August 2022

Government Draws up The State Budget for 2023, Setting The Deficit at 2.85%
Presiden Joko Widodo membacakan Nota Keuangan dan RAPBN 2023

JAKARTA. After the State Revenue and Expenditure Budget (APBN) deficit for the previous two years was consistently set higher than 3% of Gross Domestic Product (GDP), the deficit for the 2023 State Budget Draft was once more set lower than 3%, at 2.85%, or IDR 598,2 trillion.

This is inseparable from the mandate of Law Number 2 of 2020, which provides space for the government to open a deficit limit of more than 3% for the 2021 State Budget and 2022 State Budget.

This was done as a response from the government to overcome the impact of the Covid-19 pandemic. Meanwhile, the 2023 state budget must be returned to a level below 3%.

The presentation of the 2023 State Budget Draft was delivered at the same time as President Joko Widodo's state of nation address ahead of the commemoration of the 77th Independence Day of the Republic of Indonesia in front of the House of Representatives members on Tuesday (16/8).

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On this occasion, Jokowi stated that the State Budget should be able to alleviate doubts, generate optimism, and support development goals. "But still with high vigilance," he stated.

Therefore, according to Jokowi, the 2023 APBN is designed to deal with bigger challenges. Because there is still economic turmoil ahead.

In detail, the 2023 fiscal posture designed by the government consists of state revenues of IDR 2,443.6 trillion and state expenditures of IDR 3,041.7 trillion.

The target for state revenue is set at IDR 2,016.9 trillion, non-tax state revenue (PNBP) of IDR 426.3 trillion, and grants of IDR 0.4 trillion.

Meanwhile, on the state expenditure side, the government allocates IDR 2,230 trillion for central government expenditure and IDR 811.7 trillion for transfers to the regions.

To cover the deficit, the government allocated IDR 598.2 trillion in financing, which came entirely from debt financing, program loans, deepening of the Government Securities market, and state-owned investment.

Different from the last two years, the financing to be carried out in 2023 will also not involve Bank Indonesia through the burden-sharing scheme, as was the case in 2020, 2021, and 2022.
 



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