Jakarta (VNA) - The Indonesian government aims to cut the State budget deficit to 868 trillion IDR (60.38 billion USD) from 939 trillion IDR, accounting for 4.85 percent of the gross domestic product (GDP) next year. 

Indonesian President Joko Widodo on August 16 delivered a speech on the state budget bill for the 2022 fiscal year and financial notes.

The target is in line with the 4.51 - 4.85 percent of GDP  in the Macroeconomic Framework and Principles of Fiscal Policy (KEM-PPKF) recently submitted to the House of Representatives by Minister of Finance Sri Mulyani.

As of the end of Q1 2021, Indonesia’s budget deficit reached 283.2 trillion IDR, higher than the amount of 257.8 trillion IDR recorded in the same period last year. 

The budget collection only stood at 886.9 trillion IDR, while spending rose to 1,170 trillion IDR.

In his speech, Widodo set a target to lower the poverty rate to 8.5-9 percent by 2022. The ratio stayed at 10.14 percent as of the end of this year’s first quarter, according to Statistics Indonesia.

Besides, he aims to have the country’s Gini index, which  represents the income inequality or wealth inequality within a nation, stay at 0.376-0.378; and the unemployment rate at 5.5-6.3 percent./.