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Govt priority spending to increase everywhere except infrastructure
The outgoing government has proposed increased spending on priority programs for next year’s state budget, except for infrastructure, which is to see just an incremental increase or even a decrease.
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Finance Minister Sri Mulyani Indrawati prepares to brief the press about the state budget at her Jakarta office on April 26, 2024. (JP/Deni Ghifari)
T
he outgoing government has proposed increased spending on priority programs for next year’s state budget, except for infrastructure, which is set to see just an incremental increase or even a decrease.
Addressing House or Representatives lawmakers in a plenary session on Monday, Finance Minister Sri Mulyani Indrawati revealed that three priority spending allocations, namely those for education, health and social protection, are to be bumped up in 2025.
“The short-term strategy will be executed by maintaining the sustainability of priority programs while simultaneously strengthening a handful of flagship programs aimed at accelerating economic growth, reinforcing wellbeing, as well as buttressing intraregional convergence,” the minister outlined in her fiscal policy strategy.
In the medium-to-long term, fiscal policy should focus on socioeconomic transformation, the green economy and defense, among priorities, explained Sri Mulyani.
The proposed total allocation for priority spending amounts to Rp 1.9 quadrillion (US$119 billion), of which education is to receive the largest sum, between Rp 708.2 trillion and Rp 741.7 trillion.
The planned increase from the Rp 665 trillion allocated for the current year means education spending is set for the largest increase among all priority spending items, according to the ministry’s proposal.
Social protection spending is to be ramped up from Rp 496.8 trillion allocated for this year to between Rp 497 trillion and Rp 513 trillion in 2025.
