Jakarta. Revenues from tax amnesty and non-tax amnesty are coming in lower than expected. Under this circumstance, government is suggested to further slash its spending by more than IDR137.6 trillion. Economist from Maybank Indonesia Juniman said that the government may further cut the state’s expenditure, as long as it does not affect the productive budget. “The budget austerity should be done gradually to avoid the shock”, said Juniman on Friday (2/9). The budget austerity may affect the economic growth. However, the government can revive the economy by acceleratinginfrastructure spendings and pursuing investment targets.
Further budget cuts is feasible
Jakarta. Revenues from tax amnesty and non-tax amnesty are coming in lower than expected. Under this circumstance, government is suggested to further slash its spending by more than IDR137.6 trillion. Economist from Maybank Indonesia Juniman said that the government may further cut the state’s expenditure, as long as it does not affect the productive budget. “The budget austerity should be done gradually to avoid the shock”, said Juniman on Friday (2/9). The budget austerity may affect the economic growth. However, the government can revive the economy by acceleratinginfrastructure spendings and pursuing investment targets.