JAKARTA - Finance Minister Sri Mulyani Indrawati said that the 2019 State Budget is encouraged to be expansive and countercyclical while playing a strategic role to maintain macroeconomic stability and momentum of domestic growth, drive the business world, and provide protection to the public amid global uncertainty.
The 2019 Budget deficit was recorded at 2.2% of the GDP, higher than the initial target of 1.84% of the GDP. According to the Ministry of Finance, the widening deficit occurred measurably with consideration to all risks, benefits, and fiscal credibility.
“Amid pressure from the unconducive global economic environment in 2019, we managed to maintain economic growth above 5%. In terms of component, domestic consumption managed to grow above 5% for three consecutive quarters,” said Ms Indrawati at a press conference at the ministry, Tuesday (7/1).
“Low inflation results in well-maintained purchasing power. Government consumption also provides support amid economic decline.” (MS)