State spending grew 15.5 percent as of September 2020

State spending grew 15.5 percent as of September 2020

Sri Mulyani (right), Indonesia's Finance Minister.

Jakarta (ANTARA) - Until September 31, 2020, state expenditure had grown by 15.5 percent (yoy), amounting to Rp1,841.1 trillion, from Rp1,594.66 trillion during the corresponding period last year, according to Finance Minister Sri Mulyani Indrawati.

The realization of Rp1,841.1 trillion constituted 67.2 percent of the targeted Rp2,739.2 trillion in the amended State Budget (APBN).

"The government managed to accelerate its spending tremendously in the third quarter that is expected to be a driving force or create a positive cycle in the third and fourth quarters," the minister stated at a press conference on the State Budget here on Monday.

The actual expenditure of Rp1,841.1 trillion came from the central government spending of Rp1,211.4 trillion, or 61.3 percent of the target of Rp1,975.2 trillion, with ministries/institutions (K/L) expenditure of Rp632.1 trillion and non-K/L expenditure at Rp579.2 trillion.

K/L spending had reached 75.6 percent of the targeted Rp836.4 trillion outlined in Presidential Decree 72 of 2020, while the realization of non-K/L expenditure reached 50.9 percent of the target at Rp1,138.9 trillion.

K/L expenditure comprised personnel expenditure of Rp180 trillion, or 70.1 percent of the target at Rp256.6 trillion and a contraction of 2.6 percent (yoy) due to changes in the yearly holiday allowances (THR) payment policy and the 13th salary.

Goods expenditure reached Rp222.7 trillion, or 82 percent of the target at Rp271.7 trillion, and was able to grow to 9.1 percent (yoy) influenced by implementation of the National Economic Recovery (PEN) program in the context of the COVID-19 pandemic.

Realization of the PEN program included the payment of incentives for health workers, provision of health equipment or infrastructure, assistance for micro-entrepreneurs, as well as wage subsidy for workers participating in the programs of manpower social security programs.

The realization of capital expenditure reached Rp73.2 trillion, or a contraction of nine percent, owing to project restructuring in the context of refocusing or reallocation of COVID-19 handling and social restrictions.

For social assistance spending, Rp156.3 trillion, or 91.5 percent of the target, at Rp170.7 trillion, was realized and grew up to 79.8 percent.

Meanwhile, realized expenditures of non-ministries/institutions (non-K/L) reached Rp579.2 trillion, an increase of 30.7 percent as compared to Rp443.2 trillion recorded during the corresponding period last year, supported by realized subsidies of Rp114.3 trillion and other expenditures of Rp112.4 trillion.

Furthermore, state spending was also supported by the realization of Transfers to Regions and Village Funds (TKDD), specifically Rp629.7 trillion, or 82.4 percent of the target at Rp763.9 trillion. Related news: Accelerated state spending to boost economy: minister
Related news: Finance Ministry outlines three strategies for avoiding recession