Gov’t, DPR Pass Bill on 2022 State Budget

INDUSTRY.co.id - The Government and the House of Representatives (DPR) Thursday (30/09) agreed to approve the State Budget Bill for the 2022 Fiscal Year during the 6th Plenary Session of the DPR for the First Session Period of the 2021-2022.

The 2022 State Budget remains an important instrument in supporting economic recovery, continuing reforms, and protecting the public from the threat of COVID-19.

“The Government is aware of the role of the anticipatory and flexible State Budget in responding to the need in health care, community protection, and support for the business sector that are very decisive factors,” said Minister of Finance Sri Mulyani Indrawati during the session.

The Minister added that the Government continues to make recovery efforts so that the projected economic growth in 2022 can reach 5.2 percent. According to her, this projection is considered quite realistic as it takes into account the dynamics of the recovery and structural reforms, as well as the vigilance of the risk of uncertainty in the future economic performance.

Economic performance in 2022 will also be supported by the recovery of public consumption, investment, and international trade, she added. The Government, she added, supports economic recovery and at the same time maintains macroeconomic stability to reduce poverty, unemployment, and inequality by 2022.

The Minister also pointed out that the Government continues the social protection programs and job creation so that the poverty rate is expected to drop in the range of 8.5-9 percent, the level of open unemployment is at 5.5-6.3 percent, and the Gini ratio or inequality ratio will decrease to 0.376-0.378. Meanwhile, human development index is expected to increase from 73.41 to 73.46.

In stimulating the economy and development targets, the Minister added that the 2022 State Budget posture includes state revenues of Rp1,846.1 trillion and state expenditures of Rp2,714.2 trillion, resulting in a deficit of Rp868 trillion or 4.85 percent of the Gross Domestic Product (GDP).

Gradually, the state budget deficit will be reduced from 6.14 percent in 2020 to 5.7 percent of GDP in 2021, and for next year will be at 4.85 percent of the GDP.

“This illustrates the consistent efforts to maintain the health of the State Budget even though the State Budget works extraordinarily hard,” said the Minister.

On that occasion, Sri Mulyani also expressed gratitude for the support and cooperation of all members of the DPR so the process of drafting, discussing, and approving the 2022 State Budget Bill could be completed properly and on time.

“The Government has been making efforts so that the people will continue to be protected and recover. We will continue to strive for the economy to recover and rebound. We will try to restore the State Budget and make in a good condition again,” she remarked.