Ir. Dzikri Firmansyah Hakam, S.T., Pg.Dip., M.Sc., Ph.D., a lecturer from the Business and Financial Risk Research Group at the School of Business and Management, Institut Teknologi Bandung (SBM ITB), explained that the 3 percent deficit ceiling has long served as an instrument for maintaining fiscal discipline. However, he emphasized that discussions on fiscal deficits should also consider the broader economic benefits generated by government spending.

He noted that fiscal conditions vary across countries, depending on revenue capacity, financing costs, and the quality of budget management. "Therefore, the size of the deficit is not the only indicator of a country's fiscal health," he said.

Quality of Government Spending Is Key to Economic Growth
Dr. Dzikri believes that fiscal expansion could be an option for accelerating Indonesia's economic growth, which has remained at around 5 percent. Additional financing could be directed toward productive investments, including infrastructure, education, healthcare, energy transition, and digitalization.

"Nevertheless, a higher fiscal deficit does not automatically lead to stronger economic growth. Its impact largely depends on how effectively the budget is utilized and the extent to which public investment can improve productivity," he explained.

Referring to studies by the International Monetary Fund (IMF), Dr. Dzikri highlighted that improving public investment efficiency could amplify the impact of government spending on economic growth. This underscores the importance of ensuring that every additional allocation of financing delivers measurable economic benefits.

According to him, the government should first optimize its existing budget through spending evaluations, more effective targeting of programs, and stronger assessments of the benefits generated by development projects.

Improving the quality of government spending should therefore be an initial priority before considering a higher fiscal deficit ceiling.

Balancing Economic Growth and Fiscal Sustainability
Beyond the potential for economic growth, Dr. Dzikri also emphasized the importance of considering the consequences of debt financing, including interest payments and future financial obligations.

"Additional debt, when managed productively, has the potential to strengthen economic capacity and government revenue. Conversely, financing activities with limited economic impact may increase the fiscal burden without generating comparable benefits," he stated.

He therefore stressed that efforts to stimulate economic growth must go hand in hand with greater budget efficiency, stronger government revenue, and effective fiscal risk management.

From this perspective, the proposal to raise the State Budget deficit ceiling beyond 3 percent could be examined as a potential policy option, while taking into account existing regulations and thoroughly assessing its benefits and risks.

Dr. Dzikri concluded that the success of fiscal policy is determined not merely by the size of the deficit, but also by the government's ability to use public funds to enhance productivity, stimulate economic growth, and deliver sustainable development benefits to society.