“The overall deficit reached Rp682.1 trillion, or 4.16 percent of the GDP. This is still in accordance with what is outlined in Presidential Decree (Perpres) 72 of 2020 from our trend," the minister noted in Jakarta, Monday.
Indrawati remarked that the deficit, reaching 4.16 percent of the GDP, was driven by the realization of state revenue, which until September, reached Rp1,159 trillion, lower than the realization of expenditure that had touched Rp1,841.1 trillion.
The minister expounded that the realization of state revenue, amounting to Rp1,159 trillion, came from tax revenue of Rp892.4 trillion, or 63.5 percent of the Rp1,404.5-trillion target in Presidential Decree (Perpres) 72 of 2020.
Tax revenue realization recorded a contraction of 14.1 percent (yoy) percent as compared to the performance of Rp1,039.46 trillion during the corresponding period last year.
The realization of Non-Tax State Revenue (PNBP) until September 2020 reached Rp260.9 trillion, or 88.7 percent of the target of Rp294.1 trillion in Perpres 72 of 2020.
The PNBP realization was recorded in the negative zone, specifically 13.6 percent, as compared to Rp301.82 trillion during the corresponding period last year.
However, state revenue from grants experienced a notable rise of 483.9 percent as compared to the same period last year, from Rp0.97 trillion to Rp5.7 trillion.
Meanwhile, the realization of expenditure of Rp1,841.1 trillion by September 2020 had reached 67.2 percent of the target of Rp2,739.2 trillion in Perpres 72 of 2020, increasing by 15.5 percent (yoy) as compared to the same period last year wherein it reached Rp1,594.66 trillion.
Realized 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 (K)/institutions (L) expenditure of Rp632.1 trillion and realized non K/L expenditure worth Rp579.2 trillion.
K/L spending had reached 75.6 percent of the target of Rp836.4 trillion in Perpres 72 of 2020, while the realization of non-K/L expenditure reached 50.9 percent of the target of Rp1,138.9 trillion.
Furthermore, the increase in 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 Rp763.9 trillion target in Perpres 72 of 2020.
The realization of TKDD comprised transfers to the regions reaching Rp572 trillion and Village Funds amounting to Rp57.7 trillion.
"Countries recording a deficit reached more than a dozen, with Indonesia's deficit at 4.16 percent of the GDP and economic growth in the third quarter estimated to have contracted between -2 percent to -0.6 percent. We are optimistic of Indonesia doing much better," the minister stated.
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