Govt spending fuels 3rd quarter growth: BPS

Govt spending fuels 3rd quarter growth: BPS

Chief of the Central Statistics Agency (BPS), Suhariyanto. (ANTARA/Humas BPS/pri)

Government consumption grew 9.76 percent (yoy) thanks to the high realization of budget funds for social assistance, goods and services compared to the third quarter of 2019.
Jakarta (ANTARA) - Government consumption was the only expenditure component that contributed to the country's growth in the third quarter, according to the Central Statistics Agency (BPS). “Government consumption grew 9.76 percent (yoy) thanks to the high realization of budget funds for social assistance, goods and services compared to the third quarter of 2019," BPS chief Suhariyanto said in a press conference here on Thursday.

The high realization of budget funds for social assistance was due to allotment of additional budget funding to support the national economic recovery program and deal with the impact of the COVID-19 pandemic, he explained.

He said the high realization of spending on goods and services was influenced by the high absorption of the non-operational budget, especially to handle the impact of the pandemic.

“The disbursement of incentives for medical workers under the national economic recovery program and the payment of teachers' allowances also contributed to a rise in personnel spending,” he pointed out.

Overall, the high government consumption was apparent from the realization of state spending of Rp771.37 trillion in the third quarter of 2020, as compared to Rp559.97 trillion recorded during the same period last year, BPS stated.

The other main expenditure components such as household consumption and exports did not contribute to the national economy, it said.

Household consumption and formation of gross fixed capital, which contributed 88.43 percent to the gross domestic product, contracted 4.04 percent and 6.48 percent, respectively, while exports contracted 10.82 percent.

Household consumption contracted due to low retail sales, including of clothes, fuel oil, household utensils, and information and communication devices.

The formation of gross fixed capital grew negatively owing to declining imports and domestic products. (INE)


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