After a second downward revision, the ministry now expects the difference between state revenue and spending to reach just 3.92 per cent of GDP, much lower than its previous projection of 4.5 per cent as well as the budget plan’s original assumption of 4.85 per cent.
Led by the United States Federal Reserve, central banks around the world have raised their interest rates at a speed also not seen in decades, raising concerns about some countries’ ability to service debt. Tax revenue, including income from customs and excise, is expected to reach Rp 1.92 quadrillion, while nontax revenue is projected to reach Rp 510.9 billion. These figures exceed last year’s achieved income by 24 and 11 percent, respectively.
The rise in spending was necessary to keep fuel and electricity affordable despite the global surge in energy prices, she underlined. “This was all done as a cushion to protect the people against [external] shocks,” Sri Mulyani said.