Realization Of State Expenditures In January 2021 Rp. 145 Trillion, Sri Mulyani: A Good Start To Encourage Economic Growth

Minister of Finance, Sri Mulyani Indrawati. (Photo: Ministry of Finance)

JAKARTA - The government, through the Minister of Finance (Menkeu) Sri Mulyani, reported that the realization of state spending as of January 2021 amounted to IDR145.8 trillion, or 5.3 percent of the 2021 APBN target. This value was recorded far higher than the achievement for the January 2020 period.

"The absorption which is higher than last year indicates a good start to boost economic growth," he said in a virtual press conference for our APBN, Tuesday, February 23.

Meanwhile, the realization of central government spending until the close of January 2021 reached IDR 94.7 trillion, or 4.8 percent of the 2021 APBN target, which is 32.4 percent higher than the same period last year.

He added that last month's realization was mainly driven by capital expenditures, social assistance and funds for the national economic recovery sector (PEN).

"The most important thing in the January period APBN is the APBN spending side because the APBN fiscal instruments that accelerate recovery, and it can be seen in the spending, all of them are positive growth compared to January last year," added the Minister.

Furthermore, spending by ministries / agencies (K / L) grew by 55.6 percent, driven by a significant increase in capital expenditures and social assistance.

The realization of capital expenditures per January 2021 reached Rp. 11.9 trillion, growing 539.4 percent year-on-year (yoy), particularly from capital expenditures for infrastructure projects such as road construction, irrigation and the PUPR Ministry network as well as capital expenditures for equipment and machines for the Police.

In addition, social assistance spending grew 51.4 percent from the distribution of cash assistance and the accelerated disbursement of basic food cards in February in January.

Furthermore, non-K / L spending grew by 14.8 percent, mainly used for pension spending or ASN health insurance and energy subsidies.

Meanwhile, the realization of transfers to regions and village funds (TKDD) until the end of January 2021 reached Rp. 51.1 trillion, or 6.4 percent of the 2021 APBN target.

Unfortunately, the TKDD figure grew negatively by 25.3 percent yoy. This is influenced by the decrease in the General Allocation Fund (DAU) ceiling in the 2021 FY and the incomplete distribution requirements that are fulfilled by the Regional Government.

"But on the other hand, there was an increase in the allocation of the Revenue Sharing Fund (DBH) for mineral and coal, geothermal, and fisheries which was distributed in January, as well as an increase in the realization of village funds due to the acceleration of requests for Village BLT distribution in January 2021," concluded Sri Mulyani.