Minister Affirms Calculation on New Capital’s Budget in line with Fiscal Consolidation

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 19 Januari 2022
Category: News
Read: 754 Views

Minister of Finance Sri Mulyani Indrawati (01/17) (Photo by: PR of Cabinet Secretariat/Agung)

The House of Representatives, Tuesday (01/18) has passed bill on the new capital city (IKN) into law. The stipulation of the law will be a legal basis for Ministry of Finance in monitoring the relocation plan particularly in terms of state financial. The budget needed will be well calculated so the aim of the development of new capital city can be achieved while still maintaining the stability and sustainability of state financial.

The Government will also ensure that the development funding will not interfere with COVID-19 handling and economic recovery program considering this funding is set to boost the establishment of new centers of economic growth.

According to Minister of Finance Sri Mulyani Indrawati, the Government is still focused on COVID-19 handling and economic recovery program. However, in terms of the implementation of the IKN development, especially the initial momentum of its development including infrastructure construction, it can be seen as a process to boost national economic recovery in 2022.

The Minister further said that the development of new capital and relocation plan consist of several stages and the most critical stage after the Law has been enacted is the first phase starting from 2022 until 2024.

To that end, the calculation and allocation of budget needed for the IKN must stay in line with fiscal consolidation post COVID-19 pandemic, and must be in accordance with the current condition and capacity of the State Budget so that it will remain balanced.

“From 2022 until 2024, COVID-19 handling, economic recovery, national election, and the IKN have been included in the State Budget. At the same time, starting 2023, budget deficit must be kept at three percent in maximum,” she remarked. (PR of Ministry of Finance/UN) (AP/MMB)

Latest News