The Finance Ministry (Kemenkeu) reported that the realization of state revenue reached Rp1,028.02 trillion in August 2020, or 60.52 percent of the revised state budget (APBN) target of Rp1,699.9 trillion set under presidential decree (Perpres) 72/2020. The realization was lower than the figure recorded during the same period last year, which stood at Rp1,189.3 trillion, or 54.9 percent of the Rp2,165.1-trillion target set in the 2019 State Budget.
"Tax revenue is certainly a performance indicator that is always monitored by all stakeholders," Deputy Minister of Finance, Suahasil Nazara, said at a joint meeting with Commission XI of the Indonesian Parliament in Jakarta on Monday.
The realization of state revenues in August this year comprised tax revenues of Rp795.95 trillion and non-tax state revenues (PNBP) of Rp232.07 trillion.
Meanwhile, Suahasil said, the debt ratio reached 34.53 percent of the gross domestic product (GDP), as of the end of August.
On an annual basis, the debt-to-GDP ratio at the end of August showed an increase compared to the same period last year, when the figure was recorded at 29.8 percent.
The debt ratio increased due to the influence of interest rates and exchange rates as well as an increase in the issuance of government securities (SBN), the deputy minister said.
In addition, the increase in the debt ratio is in line to meet financing needs in view of the widening deficit in the context of handling the COVID-19 pandemic, he added.
The deficit in Perpres 72/2020 is predicted to be 6.34 percent of the GDP by the end of 2020, or Rp1,039.2 trillion. (INE)
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