Government Says State Spending Grows 15.9 Percent Until April 2021

Finance Minister Sri Mulyani. (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Minister of Finance, Sri Mulyani, reported that the realization of state spending until April 2021 amounted to IDR 723 trillion grew 15.9 percent from the realization in the same period 2020.

"This is very high growth in spending. In addition to efforts to overcome the impact of the pandemic, the government also seeks to realize the budget quickly in the first quarter of 2021, especially at the beginning of the year there was a spike in cases of COVID-19", she said in a virtual APBN KITA press conference, Tuesday, May 25.

The Minister of Finance added that in early 2021 the government will focus its spending on handling pandemics and helping people in terms of social protection.

"It's a form of social safety net and creates resilience", she said.

In detail, the growth of state spending this year was supported by ministry/agency spending which also grew by 37.2 percent. Followed later by non-ministerial/institutional spending of 17.7 percent, transfers to regions and village funds increased by 0.9 percent, and investment financing growth soared 552 percent.

Meanwhile, the realization of the National Economic Recovery fund (PEN) until May 2021 is IDR 183.98 trillion or 26.3 percent of the budget ceiling provided this year of IDR 699 trillion.

For information, this year state spending in the 2021 State Budget is planned at IDR 2,750 billion. Meanwhile, in terms of revenue, it is targeted to reach IDR 1,743 trillion. This means that the budget deficit is recorded around IDR 1,000 trillion or equivalent to 5.7 percent of gross domestic product (GDP).