Sri Mulyani Reports On State Budget Allocation Until Q3 2021: State Finance Is Getting Better

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that economic performance was getting better and gave optimism for the outlook for growth in the third quarter to improve to 4.5 percent. This was conveyed by the Minister of Finance when holding a virtual press conference on our State Budget today.

It was stated that various early indicators of the national economy had increased again, such as Manufacturing MI which had entered the 52.2 expansion zone, increasing from 43.7 in August 2021.

The trade balance surplus in September 2021 which was still strong, recorded at 4.37 billion US dollars, was supported by export performance which grew 47.6 percent (yoy), while imports grew 40.3 percent (yoy). The position of foreign exchange reserves was recorded at 146.9 billion US dollars, well above the international adequacy standard.

“The strengthening of national economic performance has encouraged continued improvement in the performance of the state budget. As of September 2021, state revenues reached Rp1,354.8 trillion, growing strongly by 16.8 percent (yoy), supported by increased tax, customs and excise revenues and PNBP. The increase in state revenues is in line with the recovery in economic activity, an increase in exports and imports, and the upward trend in commodity prices," she said, Monday, October 25.

Meanwhile, in terms of state spending, it reached Rp1,806.8 trillion or 65.7 percent of the ceiling. The book grew minus 1.9 percent (yoy), lower than last year's 15.5 percent (yoy).

This condition created a state budget deficit of Rp452.0 trillion (2.74 percent of GDP), or better than the position in September 2020 which was Rp681 trillion (4.41 percent of GDP).

Furthermore, the state treasurer explained that in the third quarter of this year, the positive trend of state revenue is expected to continue in line with economic improvement, so that the handling of COVID-19 and the national economic recovery program are maintained.

"The government is committed to continuing anticipatory and responsive steps to the existing dynamics and working with all authorities to support policy effectiveness," she said.

Then, it is said that the role of fiscal stimulus and the state budget will continue to be increased as an effort to recover the economy during the pandemic.

"This step is in line with the active role of the community in implementing health protocols and participating in vaccination programs to achieve the herd immunity target by the end of 2021," closed the Minister of Finance Sri Mulyani.