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Govt exceeds 2022 revenue target, allowing sooner fiscal consolidation
The Finance Ministry has managed to surpass its 2022 state-revenue target, thanks to strong economic recovery and high commodity prices, allowing the government to achieve faster-than-planned fiscal consolidation with the budget deficit already falling to below 3 percent a year earlier.
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Finance Minister Sri Mulyani Indrawati. (Finance Ministry/-)
T
he Finance Ministry managed to surpass its 2022 state-revenue target, thanks to strong economic recovery and high commodity prices, allowing the government to achieve faster-than-planned fiscal consolidation with the budget deficit already falling to below 3 percent per year earlier.
The government surpassed its revenue target despite its upward revision last year to accommodate greater-than-expected commodity windfall and domestic economic recovery.
This was the second time, as the ministry exceeded its revenue target a year earlier due to similar factors.
Tax revenue, including excise, and nontax revenue grew by around 30 percent year-on-year (yoy) to Rp 2.03 quadrillion (US$147.23 billion) and Rp 588 trillion, respectively, last year. Both figures were around 20 percent above their each already-revised target.
With this higher-than-targeted revenue, the government managed to raise its tax ratio to 10.4 percent of GDP, exceeding pre-pandemic levels, which were less than 10 percent, the ministry data show.
“This is not a story on a mere commodity boom, but it is also about the [domestic] economic recovery, which spread evenly in sectors and regions in the country,” Finance Minister Sri Mulyani Indrawati told reporters during a press briefing on Tuesday.
Read also: Year of turmoil to test fiscal consolidation
