Jurnal Ekonomi
Vol. 12 No. 04 (2023): Jurnal Ekonomi, 2023

ANALYSIS OF ASYMMETRIC FISCAL CONSOLIDATION POLICY TO ENCOURAGE ECONOMIC ACCELERATION

Agung Budilaksono (Politeknik Keuangan Negara STAN, Tangerang Selatan)



Article Info

Publish Date
29 Nov 2023

Abstract

The impact of handling the COVID-19 pandemic has drastically increased the realization of the 2020 state budget deficit to 6.13%, which exceeds the normal limit. This has caused a slowdown in the Indonesian economy.  The government needs to mitigate risks through fiscal consolidation policies. Therefore, this research aims to find a fiscal consolidation policy that significantly impacts the acceleration of national economic growth. The analytical method employs multiple linear regression,  and observation period between 1997 and 2021. The variables that used in this research are  the changes in GDP for the current year (d_pdbt), the changes in Government Expenditure for the current year (d_goext), the changes in tax revenue for the current year (d_taxt), the changes in Trade Balance for the current year (d_tbt), Unemployment changes for the current year (d_umt), government expenditure in the current year (goext), Tax Revenue in the current year (taxi), and the difference in changes in tax revenue in the current year minus government expenditure in the current year (d_taxt - d_goext). Data analysis results show that two variables have a significantly positive impact on the current year's GDP changes, namely (i) d_taxt, and (ii) goext. Meanwhile, three variables exhibit significantly negative impacts: (i) d_goext, (ii) d_umt, and (iii) d_tax_d_goex)t. Additionally, two variables show insignificant impacts on economic change, namely: (i) d_tbt, and (ii) taxt..

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Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSN 2301-6280, e. ISSN 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...