Finance minister, Sri Mulyani Indrawati, reported until end of September 2020, Indonesia posted a budget deficit Rp682.12 trillion (US$46.40 billion), or around 4.16 percent of gross domestic product - Photo by MoF Office

JAKARTA (TheInsiderStories) – Finance minister, Sri Mulyani Indrawati, reported until end of September 2020, Indonesia posted a budget deficit Rp682.12 trillion (US$46.40 billion), around 4.16 percent of gross domestic product (GDP). Earlier, she predicted, the deficit could widens to 6.27 percent of GDP followed the development of COVID-19 pandemic.

In nine months, said the minister in a virtual conference on Monday (10/19), total government spending recorded Rp1,841.1 trillion and state revenues was Rp1,159 trillion. According to her, the realization of government income lowered 13.7 percent when compared to the same period in 2019, which amounted to Rp1,342.25 trillion.

In details, tax revenues decreased 14.1 percent from Tp1,839.46 trillion to Rp892.4 trillion and 63.5 percent of this year’ targets Rp1,404.5 trillion. Non-tax revenues of Rp260.9 trillion or equivalent to 88.7 percent of 2020′ targets Rp294.1 trillion. And grants was exceeding the initial targets Rp1.3 trillion to Rp5.7 trillion.

While, government spending has been realized 67.2 percent of the allocation in 2020 State Budget. This figures has also increased by 15.5 percent when compared to last year’ realization of Rp1,594.66 trillion.

More detail, the realization of central government spending was Rp1,211.4 trillion, an rose 21.2 percent compared to 2019 of Rp999.12 trillion. This figure is equivalent to 61.3 percent of the absorption target in the state budget, which amounted to Rp1,975.2 trillion.

And, the realization of transfers to regions and village funds recorded Rp629.7 trillion, or 82.4 percent of this year’ targets, and an increase of 5.8 percent when compared to last year’ realization worth of Rp595.35 trillion. Indrawati adds, until the end of 2020, the government targeting the state revenues to reach Rp1,699.9 trillion.

While, the realization of budget financing recorded Rp784.67 trillion or 75.5 percent of the 2020 State Budget’ targets, mainly from debt financing. Until end of September, she continued, the realization of debt financing reached Rp810.77 trillion, consisting of government debt Rp790.64 trillion and net loans of Rp20.13 trillion.

She also announced, until Oct. 13, total purchases by Bank Indonesia, referred to burden sharing scheme, amounting to Rp61.63 trillion, with details SUKUK Rp29.05 trillion and state bond Rp32.58 trillion.

US$1: Rp14,700

Written by Editorial Staff, Email: theinsiderstories@gmail.com