DYNAMIC RELATIONSHIP BETWEEN ENERGY SUBSIDY AND FISCAL DEFICIT IN INDONESIA

Problem the fiscal deficit still has a bad influence on increase in government debt every year. So far, tended to withdraw new cover deficit.In conditions of negative primary balance, withdrawals tend deficits and failures long run. This condition is also exacerbated by Covid-19 that hit Indonesia. The exceeded 3 percent GDP. even though state finance law maximum had people's purchasing power. caused decrease power goods services. In dealing with this condition, needs through price regulation. Energy subsidiesclosely related policy number macroeconomic variables such as: inflation, exchange rates BIR.This study aims determine relationship between energy subsidy control deficit, order obtain an optimal deficit. Through subsidies, value can be obtained. Subsidy controls affect amount debt, so