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Banggar DPR: State budget deficit limit should be relaxed to 5% of GDP

24 March 2020 09:43

JAKARTA. The Indonesian House of RepresentativesBudget Committee (Banggar DPR) proposed to the Ministry of Finance (MoF) that the state budget deficit be widened to 5%.

Deputy Chairman of the Budget Committee, Cucun Ahmad Syamsurijal said that to maintain the sustainability of the 2020 State Budget and the national economy, as well as other fiscal functions amid the Covid-19 outbreak, the committee proposed that the government take a number of anticipatory steps.

A press release from Banggar DPR revealed that one of the suggestions was that the government needed to immediately issue Government Regulation in lieu of Law (Perppu) to revise Law No. 17 of 2003, concerning State Finances, especially in the part about the state budget deficit.

"To revise the explanation about the state budget deficit limit from 3% to 5% of GDP and the debt to GDP ratio remains at 60%," said the committee on its official statement on Tuesday (24/3).

According to Ahmad, the proposal was submitted considering the economic impact caused by the co-19 pandemic on the economy. (AM/AR)

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