JAKARTA (Reuters) – Indonesia’s parliamentary budget committee and government agreed on Wednesday 2020 to spend 3, 061. 2 trillion rupiah ($205.061 billion US dollars), slightly higher than the proposed budget, Committee Chairman Syed Abdullah
Budget deficit target agreed at 2.84% of GDP Syed It was slightly lower than the 2.85 percentage of GDP proposed by the government in August, told Reuters.
The government has previously said it will make the budget healthier by reducing the deficit to below 3% of GDP next year, as required by law.
Indonesia waived its statutory budget deficit cap for three years from 2020 to provide room for increased government spending during the pandemic. The Treasury Department’s outlook for this year’s deficit remains at 3.92% of GDP.
The committee and the government also agreed on 2023 macroeconomic assumptions, including 5.3% economic growth and a 3.6% inflation target.
Needs a wider parliamentary vote to approve the 2023 budget, which could come later this month or in October conduct. Budget committee approval is usually reflected in a wider vote.
($1=14,85. Indonesian Rupiah)