Government allocates Rp10 trillion buffer for fiscal risks in 2020

Government allocates Rp10 trillion buffer for fiscal risks in 2020

Director General of Budget at the Finance Ministry Askolani (ANTARA/AstridFaidlatulHabibah)

Every year, the state budget faces risks, and we must be ready to face them
Jakarta (ANTARA) - The Indonesian government has set aside fiscal buffer to the tune of Rp10 trillion in the 2020 state budget, nearly similar to the allocation in 2019.

The fiscal buffer will be used as a precautionary measure against various emergency problems, including reducing the budget deficit, which may arise in the midst of the global crisis, Director General of Budget at the Finance Ministry Askolani noted on Thursday

"Every year, the state budget faces risks, and we must be ready to face them," he stated.

Related news: Indonesian economy to grow 5.2% in 2019: BI

Askolani expounded that the fiscal buffer aims to counterbalance a drop in state revenues that may take place if the economic growth outlook fails to reach the initial target, he remarked.

This holds true with the national economic growth target for 2020 being revised down to 5.1 percent in comparison with the targeted 5.3 percent in the state budget.

The outlook, failing to accord with the target, will have an impact on tax revenues that will ultimately add to the budget deficit, he pointed out.

"Hence, in order to control it, we utilize the buffer fund," he noted.

The government will not exhaust the fiscal buffer as it had done in 2019, he stated.

Finance Minister Sri Mulyani Indrawati had earlier remarked that the budget deficit in the year up to August 2019 had reached Rp199.1 trillion, constituting 1.24 percent of the gross domestic product.

Related news: Indonesia's economic growth unaffected by global pressure: Minister   

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