The Government Prepares A Budget For Handling The Impact Of COVID-19 By 2022

Ministry of Finance Building. (Angga Nugraha / VOI)

JAKARTA - The spread of the corona virus pandemic or COVID-19 in Indonesia is increasingly widespread, it has even spread to 34 provinces. Because the spread of this virus is still high, the government will prepare a budget to deal with the effects of this virus pandemic for the next two years.

Director General of Budget at the Ministry of Finance (Kemenkeu) Askolani said the government had also considered continuing to allocate funds for COVID-19 countermeasures until 2022.

Askolani explained, handling the impact of COVID-19 will also be included in the budgeting draft for the 2021 national revenue and expenditure budget (RAPBN) that is currently being prepared by the government.

"The budget for the impact of COVID-19 is not only for the last two, three months. We (the government) have seen a package to handle the impact of COVID-19 not only for 2021, but possibly for 2022. And it has been considered," he said, in a virtual discussion with the theme 'State Budget Strategy in the Middle of COVID-19 and the Risk of a Global Economic Recession', in Jakarta, Tuesday, April 21.

Askolani said, the preparation of the 2021 RAPBN in the form of a macroeconomic framework and the main points of fiscal policy in preparation for next year, has been prepared by the government and is in process.

"The RAPBN will be submitted to the DPR in May," he said.

According to Askolani, the government is also considering continuing the support that has been issued by the government in the form of stimulus I and II. This consideration is in anticipation if the virus continues for the next two years.

There are at least three important agendas that are of concern to the government. First, reform of the social protection system. Second, reform of the health system. Third, reforming the education system.

"A package of policies for handling COVID-19 is not only anticipated for this year, but how can support be continued, especially for social safety net reform, health and education reform," he explained.

The deficit will recover in 2023

The government predicts that the impact of the COVID-19 pandemic on the soaring budget deficit is predicted to be felt in the next two years or 2023.

Askolani said the budget deficit against GDP this year is also predicted to exceed 5 percent. This prediction is much bigger than the mandate of Law Number 17 of 2003 concerning State Finances which sets a maximum of 3 percent.

"In Perpu No.1 / 2020 there is an increase in the deficit above 3 percent and it is hoped that it can be controlled by a gradual decline in 2022. So that by 2023 the deficit figure can be controlled at the 3 percent level," he explained.

According to Askolani, the government will compile a number of measures so that the APBN deficit can return in accordance with the mandate of the law. Later, anticipated policies will be directed in the medium term frame.