Sri Mulyani: The Widening State Budget Deficit Is An Effect Of The Overcoming COVID-19

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati explained the causes of the 2020 state budget (APBN) deficit which is projected to widen to IDR 1,039.2 trillion. This means that the budget deficit is equivalent to 6.34 percent of gross domestic product (GDP).

At the opening of the limited meeting this morning, President Joko Widodo (Jokowi) mentioned the widening of the state budget deficit. Jokowi also reminded his assistants to make careful calculations regarding changes in the posture of the 2020 state budget. This is because changes in budget posture will have an impact on increasing the deficit.

This APBN deficit is wider than the previous prediction stated in Presidential Decree No. 54 of 2020. In accordance with this regulation, the government says that the APBN deficit is 5.07 percent of GDP or IDR 852.9 trillion.

"With a deficit increasing from IDR 852.9 trillion or 5.07 percent of GDP to IDR 1,039.2 trillion, or to 6.34 percent of GDP. The latest deficit figure will be included in the revised Presidential Decree Number 54 of 2020, "he said, in a virtual press conference, Wednesday, June 3.

Sri Mulyani explained that the widening deficit was due to the increasing need for funds to tackle COVID-19 in the country. In the national economic recovery (PEN) program, around Rp. 677.2 trillion is needed. Meanwhile, implementers of the 2020 State Budget carefully according to the instructions of President Joko Widodo (Jokowi). Although it cannot be denied that there is a widening deficit.

"We will continue to maintain this increase in deficit carefully according to the President's instructions. We will use low-risk and lowest-cost funding sources, including internal sources, use of the Excess Budget Balance (SAL), government endowments and the Public Service Agency (BLU). ), as well as withdrawal of program loans, "he explained.

In addition, Sri Mulyani also emphasized that there was a decline in income this year. This is because the outbreak of COVID-19 has eroded country acceptance.

"So state income will also be eroded. Due to the corona virus pandemic that is pressing all sectors," he said.

Previously, President Joko Widodo (Jokowi) acknowledged that the 2020 State Budget (APBN) deficit had widened. He also reminded his assistants in the economic sector to make careful calculations regarding changes in the posture of the 2020 State Budget. Because changes in budget posture will have an impact on increasing the deficit.

"To the Coordinating Minister for Economic Affairs, the Minister of Finance, and the Head of Bappenas, make more careful, detailed and mature calculations on future fiscal risks," said Jokowi.