"By taking into account the uncertainty in 2021 and programs drafted and discussed by the (Finance) Ministry and the (House of Representatives) Commission, (we raise) the budget deficit to 5.7 percent of the GDP," Finance Minister Sri Mulyani Indrawati stated during a working meeting with the DPR budget committee here on Friday.
The budget deficit has been raised by 0.2 percent since the target of state revenues for 2021 was slashed by Rp32.7 trillion to Rp1,743.7 trillion, from the government-outlined Rp1,776.4 trillion in the draft 2021 state budget, she stated.
The decline corresponds to the target of tax receipts lowered by Rp37.4 trillion to Rp1,444.5 trillion, from Rp1,481.9 trillion earlier, she remarked.
Meanwhile, the target of non-tax state revenues was raised by Rp4.7 trillion to Rp288.2 trillion, from the initial projection of Rp283.5 trillion in the draft 2021 state budget.
On the other hand, state spending for next year rose by Rp2.5 trillion to touch Rp2,750 trillion, from Rp2,747.5 trillion.
The increase arose from additional energy subsidy for three-kilogram liquefied petroleum gas (LPG) canisters, amounting to Rp2.4 trillion, and a drop in revenue-sharing fund worth Rp0.8 trillion as a consequence of a change in state revenues.
The primary balance increases by Rp35.2 trillion, from Rp579.9 trillion earlier to Rp633.1 trillion.
Debt repayments for 2021 will increase by Rp34.9 trillion to Rp1,177.4 trillion, from Rp1,142 trillion.
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