"The APBN and APBD are the backbone. Hence, we must ensure that the expenditure is sufficient and beneficial to handle the economy," he remarked during an online discussion in Jakarta, Tuesday.
According to Nazara, in the midst of the COVID-19 pandemic that resulted in a drop in state revenues, the government could not lower spending in order to maintain sound budget conditions.
The minister believes that the government should, in fact, raise spending, especially those aimed at helping people affected by the pandemic despite the deficit having become very high.
Nazara noted that Indonesia was recognized as being a disciplined nation in managing the state budget deficit that has always been below three percent of the gross domestic product (GDP) since 2013.
On the other hand, the minister believes that the pandemic had compelled the government to increase the deficit to over three percent until 2022 through the issuance of Law Number 2 of 2020.
"It is not unlimited but limited until 2022 to deal with this COVID-19 pandemic," he affirmed.
Hence, Nazara made assurance that the increase in deficit would be mirrored in the optimization of spending, one of which was through the National Economic Recovery (PEN) program, with a budget totaling Rp695.2 trillion for the six main sectors.
The six sectors comprise health, social protection, MSME support, business incentives, sectoral support from Ministries/Institutions (K/L) and local governments, and corporate financing.
"We focus on the six areas of the National Economic Recovery program through the APBN and APBD," he stated.
The minister also urged the Government Internal Supervisory Apparatus (APIP), Internal Supervisory Unit (SPI), Law Enforcement Officials (APH), and other supervisors to ensure the budget can be utilized and implemented properly.
"Ensuring that all activities are conducted in a short period. Our entire society is waiting for the realization of the national economic recovery budget," he added. Related news: Accelerated state spending to boost economy: minister
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EDITED BY INE
Translator: Astrid F, Azis Kurmala
Editor: Suharto
Copyright © ANTARA 2020
