“In the RAPBN of 2021 (Brief of State Budget), the budget deficit is planned for around 5.5 percent of the GDP, which is around Rp971.2 trillion (US$65.5 billion)," said President Jokowi while addressing the nation.
During the budget transition period to 2021, the government expects state income to touch Rp1,776.4 trillion (US$119.7 billion), while state outlay is predicted to reach Rp2,747.5 (USS$185.1 billion).
The deficit estimate of 5.5 percent for next year is lower than the deficit for 2020, which is pegged at around 6.34 percent of the GDP, or Rp1,039.2 trillion (US$70 billion).
However, Jokowi stressed that the deficit would be managed in a very careful manner, and financed using several safe sources as "the outlay will be responsively conducted to support counter cyclical policy as well as the acceleration of social-economic recoveries”.
Its cost would be earned through cooperation with monetary authorities, maintaining fiscal and monetary discipline principles, as well as integrity, credibility and market confidence on government securities. (INE)
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