Jokowi Targets a 2.85 Percent Deficit in the 2023 State Budget

VIVA – In his speech on the RAPBN 2023 on Tuesday, August 16, 2022, President Joko Widodo targets the deficit in the State Revenue and Expenditure Budget or APBN 2023 can reduce to the level of 2.85 percent of Gross Domestic Product (GDP) or Rp598.2 trillion.

It can be done by observing the needs of state spending and optimizing income.

"The 2023 budget deficit is the first year we will return to a maximum deficit of 3 percent of GDP," Joko Widodo remarked.

President Jokowi said the APBN deficit would be financed by utilizing safe finance sources and managed carefully by maintaining fiscal sustainability.

The Head of State continued, the APBN deficit will be financed by utilizing safe and managed finance source while maintaining fiscal sustainability.

"The commitment to maintain fiscal sustainability is carried out so that the level of debt risk is always within safe limits through financial market deepening," Joko Widodo remarked.

President Jokowi said the government would also continue to improve the effectiveness of investment financing, particularly SOEs (BUMN) and BLUs that are directed at the completion of Central and Regional strategic infrastructure, community empowerment, as well as financing and spending synergies.

It is known, President Joko Widodo targets and hopes that open unemployment in 2023 can be reduced in the range of 5.3 percent to 6.0 percent, the poverty rate is in the range of 7.5 percent to 8.5 percent, the Gini ratio is in the range of 0.375 to 0.378, and the Index Human Development in the range of 73.31 to 73.49.

As previously reported, state revenue in the 2023 RAPBN has been set at Rp2,443.6 trillion, while state expenditure is planned at Rp3,041.7 trillion.