Indonesia lowers budget deficit limit for 2023

Indonesian President Joko Widodo (Source: Indonesian President Office )

Jakarta (VNA) – The Indonesian Government has set the budget deficit limit at 2.85 - 3% of the gross domestic product (GDP), or 598.2 trillion Rp (40.5 billion USD), for 2023.

2023 is the first year the budget deficit will be returned to a maximum of 3% of the GDP, the country’s President Joko Widodo said while presenting the draft state budget and financial notes for the 2023 fiscal year at the Parliamentary Complex on August 16.

The deficit would be financed by utilising safe and managed financing sources while maintaining fiscal sustainability, aiming to keep the debt risk within safe limits.

Earlier, the Indonesian Government had decided to relax the deficit figure in response to the COVID-19 pandemic. In 2020, the deficit stood at 6.09% of the GDP, compared to the target of 6.34%.

For 2022, the maximum deficit limit has been lowered to 5.7%./.

VNA