<![CDATA[Limited fiscal space has prompted the Indonesian government to implement budget efficiency measures, including reductions in the Ministry of Public Works' infrastructure budget, to finance the Free Nutritious Meals (FNM) Program. This study simulates the impacts of this policy on output, employment, and household income using the 2024 Indonesian Input–Output Table. Two policy scenarios are examined: budget efficiency in the construction sector and budget efficiency combined with expenditure reallocation through the FNM Program to the accommodation and food service sector. The results indicate that cuts in construction spending reduce economy-wide economic activity, particularly in the transportation, trade, and service sectors. In contrast, expenditure reallocation through the FNM Program increases employment and household income, especially in labor-intensive sectors such as agriculture and manufacturing. These findings suggest that social spending targeted at sectors with high multiplier effects can offset the adverse impacts of reduced capital expenditure while supporting inclusive and sustainable economic growth.]]>
Copyrights © 2026
