JAKARTA – The government has set the state expenditure budget to IDR 3,000 trillion, which will be optimised to support businesses to deal with high interest rates. Suahasil Nazara, Vice Minister of Finance, relayed the information to the public, as quoted in his interview with CNBC Indonesia, Friday (13/1).

According to Nazara, said the allocated state expenditure is projected to be able to subdue the impact of inflation, maintain purchase power, reinforce high-quality expenditures, and enhance regional expenditures to accelerate construction and improve welfare.

"The regional expenditure, which is distributed to local governments, will promote an equal development in all areas. Thus, the budget deficit will become the main strategy in driving growth," Nazara explained.

However, the government will remain cautious to keep the state budget deficit under control. The 2022 State Budget with a deficit below 3% is said to accelerate fiscal consolidation.

According to Nazara, Act No.2/2020 allows the state to record a deficit of over 3% in the 2022 State Budget. However, the realisation only shows deficit of below 3%. (LK/ZH)