Journal of Development Economic and Social Studies (JDESS)
Vol. 3 No. 2 (2024)

FISCAL SUSTAINABILITY IN INDONESIA: A FISCAL REACTION FUNCTION APPRACH

Dewana Pinasthika Lestari (Unknown)
Sakti, Rachmad Kresna (Unknown)



Article Info

Publish Date
24 Apr 2024

Abstract

This paper investigate to the fiscal sustainability condition in Indonesia by analyzing the influence of government debt to GDP ratio on the primary balance ratio for the period of 1990 – 2022. Therefore, this study analyzed the data using the Vector Error Correction Model (VECM) method. The result show that the government debt during the period of 1990 – 2022 is in a safe position in the long run. In this case, the government is able to achieve a primary surplus condition, reducing the government’s financial risks. The primary surplus can reduce dependence on new debt. In other words, the government is able to control the growth of its debt proportionally to the country’s economy even amidst the Covid – 19 pandemic.

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Journal Info

Abbrev

jdess

Publisher

Subject

Economics, Econometrics & Finance

Description

Publish all forms of quantitative and qualitative research articles and other scientific studies related to the field of Economic and Social ...