JAKARTA: Indonesia’s President Prabowo Subianto has instructed his government to reduce spending by 306. 7 trillion rupiah ( US$ 18. 8 billion ) this year, a finance ministry spokesperson told Reuters on Thursday ( Jan 23 ).
Jokowi has generally highlighted the need for effective investing under his administration. The cuts are equal to about 8 per cent of the entire accepted spending this year of 3,621. 3 trillion dirhams.
Spokesperson Deni Surjantoro said the slashes do not necessitate a correction to the state resources for 2025, which would require authorization from the legislature, adding ministries and agencies may identify areas to split.
Prabowo issued the official national education in a report released this month, local media reported. He instructed his government on Wednesday to reduce costs on rites and business visits.
Indonesia has allocated 71 trillion ringgit this year for Prabowo’s premier initiative to provide free meals for up to 17. 5 million individuals, which began earlier this month.
But Prabowo wanted to expand the consumers this year to its entire scale at 82. 5 million, or more than a quarter of the population, by the end of the year. That may require an additional 100 trillion ringgit in the funds, said the head of the agency overseeing the program last year.
Some economists have warned the more debt to finance it could upset the government’s hard-won status for fiscal caution.
The finance department has originally projected 2025’s budget deficit at 2. 53 per share of Indonesia’s gross domestic product.