Fiddling With The State Budget, Sri Mulyani Gives Good News: Cut Debt Plans Of IDR 219 Trillion

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the 2021 debt financing is estimated to reach Rp. 958.1 trillion. This amount is 18.6 percent lower than the 2021 APBN projection which is Rp. 1,177.4 trillion.

“Debt financing according to the APBN Law will reach Rp1,177.4 trillion. This year we will realize a debt of Rp958.1 trillion, lower by Rp219.3 trillion. This is good for our budget,” he said in a virtual working meeting with the DPR RI Budget Agency (Banggar), Monday, July 12.

According to the Minister of Finance, the decline occurred in line with the optimism of increasing state revenues and optimizing the Government's Excess Budget Balance (SAL).

"This happens because the nominal budget deficit will be lower due to our good (tax) revenues, optimal spending, and also the effective use of SAL in infrastructure investment, especially the construction of toll roads in Sumatra," he said.

To note, the realization of debt withdrawals until the first semester of 2021 was recorded at Rp443 trillion or 37.6 percent of the ceiling.

So, with this latest estimate, the government will only realize IDR 515 trillion for the second half of 2021.

Meanwhile, in terms of state revenue, this year's tax revenue is believed to reach the target of 101 percent or equivalent to Rp.1,760,7 trillion, higher than the 2021 APBN benchmark which is Rp.1,743.6 trillion.

In addition, other sectors that are considered to be able to exceed are customs and excise revenues of IDR 224.1 trillion or 104 percent of the IDR 215 trillion ceiling.

As well as the Non-Tax State Revenue (PNBP) sector which amounted to Rp. 357.7 trillion or 119 percent of the Rp. 343.8 trillion ceiling.