Sri Mulyani Reports That The State Budget Has Fallen Short Of IDR 219 Trillion Until May 2021
JAKARTA - Minister of Finance, Sri Mulyani, said the deficit in the State Revenue and Expenditure Budget (APBN) until May 2021 was recorded at IDR 219.3 trillion, equivalent to 1.32 gross domestic product (GDP).
In detail, the Minister of Finance explained that this figure was formed from a larger portion of state spending with Rp945.7 trillion compared to the revenue sector which amounted to IDR 726.4 trillion.
"State spending grew 12.05 percent year-on-year (YoY) from the May 2020 period which amounted to IDR 843.9 trillion", he said online during a working meeting with Indonesia Regional Representative Council Committee IV on Monday, June 21.
The Minister of Finance added that the high amount of spending in the first five months of this year could not be separated from the government's efforts in tackling the impact of the COVID-19 pandemic in the country.
"The growth in state spending was mainly driven by spending on goods to support recovery, including the cost of treating COVID-19 patients, and the distribution of School Operational Assistance (BOS) funds. The government is also accelerating labor-intensive capital expenditures such as roads, irrigation, and telecommunications networks", he said.
Furthermore, Sri Mulyani revealed that the state revenue sector was mostly supported by domestic revenues in the form of taxes of IDR 568.9 trillion and PNBP (Non-Tax State Revenue) of IDR 167.6 trillion.
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In general, state revenues until May 2021, which amounted to IDR 726.4 trillion, were recorded to have a share of 41.66 percent of this year's overall budget ceiling of IDR 1,743.6 trillion.
Meanwhile, state expenditures of IDR 945.7 trillion are known to account for 34.39 percent of the 2021 APBN (State Budget) ceiling which is planned to be IDR 2,750 trillion.
"To keep the state budget healthy, we must continue to improve the tax revenue sector base by carrying out fiscal reforms and still referring to tax justice for all people", closed the Minister of Finance, Sri Mulyani.