Govt sees budget deficit at 5.5% of GDP in 2021

Govt sees budget deficit at 5.5% of GDP in 2021

President Joko Widodo delivers his brief on the State Budget​​​​​​​ 2021 at the Parliamentary Complex in Senayan, Jakarta, on Friday (August 14, 2020).

In the RAPBN for 2021 (the State Budget​​​​​​​ Brief), the budget deficit is planned at about 5.5 percent of the GDP, which is around Rp971.2 trillion (US$65.5 billion).
Jakarta (ANTARA) - President Joko Widodo (Jokowi) on Friday said the government expects the budget deficit in 2021 to touch 5.5 percent of the GDP (Gross Domestic Product). He made the remarks while delivering his annual speech in the parliament before presenting the State Budget Brief for 2021, at the Parliamentary Complex of Senayan, Jakarta, on Friday.

“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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