“BPK has handed over decision-making regarding budget reallocations to the government in view of the current pandemic," BPK Chairman Agung Firman Sampurna stated here on Thursday.
Sampurna said the budget reallocations, which are expected to widen the budget deficit, can be implemented under a new law, including issuance of a government regulation in lieu of law (Perppu).
Earlier, the BPK chairman had held a meeting with government officials to discuss the impact of the COVID-19 pandemic on the examination of the 2019 Central Government Financial Report (LKPP) and the Regional Government Financial Report (LKPD), which will be conducted by BPK auditors.
The meeting also discussed revision and implementation of the 2020 budget for healthcare as well as provision of social safety and economic incentives for SMEs to help them cope with the impact of the outbreak.
Finance Minister Sri Mulyani Indrawati had said the government needed to consult the BPK before reallocating state budgets and discuss the possibility of increasing budget deficit to more than 3 percent of the gross domestic product (GDP).
Minister Indrawati said she hoped that transparency and accountability could be maintained during the consultation to avoid any violations of the law that could harm state finances.
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