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Home›Financial›State debt reaches 41% of GDP; PKS Questions State Budget Health

State debt reaches 41% of GDP; PKS Questions State Budget Health

By Kim Kirkpatrick
December 29, 2021
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TEMPO.CO, Jakarta – The Prosperous Justice Party (PKS) faction deputy leader for the economy and finance in the House of Representatives (DPR), Ecky Awal Mucharam, said the state debt which reached 41.38 percent of gross domestic product (GDP) had already surpassed its healthy share.

Ecky said this raises questions about whether the source of funds, the budget position and state spending are really healthy.

“How can we say that the state budget (APBN) is healthy when it has no significant impact on the well-being of the population,” he said.

APBN’s policy, he argued, must be able to support the country’s economy. In other words, each expenditure issued must be effective and efficient and capable of having multiple effects on other sectors.

“While the current state of the state economy is”besar pasak daripada tiang “(expenses greater than income), where many state-owned enterprises are unhealthy and have to be spared the state budget from taxes and citizen debts, which is causing concern, ”Ecky said, citing a proverb that means spending is greater than income .

The PKS politician also questioned the national stimulus package as the millennial unemployment rate hit 19.55%.

“The national stimulus program must be reviewed as the government has not yet explicitly declared a fiscal policy in the sector,” he added.

According to him, the economic situation in Indonesia is worrying as people face difficult times, such as being trapped in illegal online loans. In addition, a bill on the new capital or RUU IKN is being discussed in the midst of the economic crisis.

“On this basis, the PKS faction sees the need to improve existing policies up front,” Ecky concluded.

Read: Third-quarter foreign debt stands at US $ 395.6 billion

CAESAR AKBAR


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