Indrawati stated that the deficit was 31.8 percent of the state budget ceiling in Presidential Decree 72 of 2020 of Rp1,039.2 trillion, or 6.34 percent of the GDP.
"This (deficit) illustrates that revenues are under pressure, while spending has risen owing to the COVID-19 pandemic," she noted at the state budget press conference in Jakarta, Tuesday.
Meanwhile, the minister remarked that as of July this year, the realization of state revenue had reached Rp922.2 trillion, or 54.3 percent of the target of revisions to the state budget in Presidential Decree (Perpres) 72 of 2020 of Rp1,699.9 trillion.
This income decreased by 12.4 percent year-on-year (yoy) as compared to the corresponding period in 2019, at Rp1,052.4 trillion, which grew 5.8 percent, from July 2018.
State revenue fell owing to contraction of tax revenue by up to 12.3 percent yoy, which is only Rp711 trillion, or 50.6 percent of the revised state budget target in Perpres 72 of 2020 of Rp1,404.5 trillion.
The realization of non-tax state revenues (PNBP) of Rp208.8 trillion contracted by 13.5 percent yoy and reached 71 percent of the target of Rp294.1 trillion in Perpres 72 of 2020.
On the other hand, the realization of state expenditures until July this year grew 1.3 percent yoy to reach Rp1,252.4 trillion, from Rp1,236.3 trillion during the corresponding period last year.
The minister noted that the realization of Rp1,252.4 trillion was 45.7 percent of the revised state budget target of Rp2,739.2 trillion in Perpres 72 of 2020.
The growth in state spending was supported by the central government spending of Rp793.6 trillion, which grew by 4.2 percent, from Rp761.3 trillion during the corresponding period in 2019 and 40.2 percent of the changes to the state budget target in Perpres 72/2020 of Rp1,975.2 trillion.
The realization of central government spending, which grew 4.2 percent, was driven by social assistance spending of Rp117 trillion, or 68.6 percent of the target of Rp170.7 trillion in Perpres 72 of 2020 and was able to record a growth of 55.9 percent.
"Hence, impact on the state budget deficit is huge, specifically in the presidential decree until the end of the year, the estimate is 6.34 percent of the GDP and until the end of July, the deficit is two percent," she added.
Related news: Indonesian govt raises budget deficit to 6.34 percent of GDP
Related news: Govt sees budget deficit at 5.5% of GDP in 2021 EDITED BY INE
Translator: Astrid F, Azis Kurmala
Editor: Suharto
Copyright © ANTARA 2020
