JAKARTA: Indonesia’s parliamentary budget committee and the government on Wednesday (Sep 14) agreed on 2023 spending of 3,061.2 trillion rupiah (US$205.31 billion), slightly higher than the proposed budget, the committee’s chair Said Abdullah said.
The 2023 budget deficit target was agreed at 2.84 per cent of the gross domestic product, Said told Reuters, slightly lower than the government’s proposal in August of 2.85 per cent of GDP.
Government has previously said it will make its budget healthier by reducing its deficit below 3 per cent of GDP next year as required by the law.
Indonesia waived the legally-mandated budget deficit ceiling for three years from 2020 to provide room for increased government spending during the pandemic. The finance ministry’s outlook for this year’s deficit is still 3.92 per cent of GDP.
The committee and the government also agreed macroeconomic assumptions for 2023, including targets of 5.3 per cent economic growth and 3.6 per cent inflation.
A wider parliamentary vote is needed to approve the 2023 budget, which will likely take place later this month or in October. The budget committee’s endorsement is usually reflected in the wider vote.