"We are optimistic that the 2021 state budget is the COVID-19 pandemic state budget, which means the resources in it can be dedicated to handling the pandemic," he stated during an online discussion on priority spending for recovery during the year in Jakarta on Thursday.
Hasan affirmed that the three priority agendas are investment in the public health sector; a comprehensive digital economy in rural areas; as well as increasing micro, small, and medium enterprises (MSMEs); and endeavors to overcome unemployment.
To this end, Hasan has encouraged to evaluate the budget amount to be allocated in spending for ministries and institutions in the 2021 Draft State Budget since it was deemed to not be in accordance with the continued impact of the COVID-19 pandemic.
The Indef senior economist drew attention to the fact that Rp84.3 trillion was budgeted for the Ministry of Health in the 2021 Draft State Budget, or still lesser than the budget allocated at the Ministry of Public Works and Public Housing (PUPR), which, in fact, increased significantly to Rp150 trillion.
Hasan stated that the Ministry of Defense’s budget had reached Rp137 trillion while Rp112 trillion was budgeted for the National Police.
The senior economist concluded that the larger budget for defense, security, and order was deemed inaccurate since the impact of the COVID-19 pandemic was not expected to subside in 2021.
Hasan also called for increasing tax incentive in 2021, as it is budgeted to reach Rp20.4 trillion, or lower than the incentive for the 2020 national economic recovery (PEN) that touched Rp120.6 trillion.
The economist opined that with this budget posture, the government will be unable to realize its target of supporting economic growth in 2021 that will reach 5.5 percent.
"The 2021 Draft State Budget still has misguided priorities as the budget for healthcare is lower than that for maintaining order and security," he added.
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Translator: Dewa K, Azis Kurmala
Editor: Sri Haryati
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