"Resilience is expected. Not only rise up but fully recover, and this is our challenge for the fourth quarter of 2020 and the year 2021," Indrawati noted during a virtual discussion here on Tuesday.
The minister pointed out that the country had begun witnessing an economic reversal in the third quarter of 2020, albeit still having clocked negative growth.
Economic reversal was the result of stimulus in the National Economic Recovery (PEN) Program, with Rp695.2 trillion of budget allocated and six sectors prioritized.
Indrawati reiterated the need for various supporting policies until next year to maintain the momentum of economic resilience to usher in full recovery.
"In terms of economic recovery, the 2021 state budget would be crucial," she pointed out.
The minister noted that this year's expenditure was recorded at Rp2.739.2 trillion, while the revenue reached Rp1,699.9 trillion, thereby making the balance deficit of Rp1,039 trillion, or 6.34 percent of the gross domestic product (GDP).
The fiscal policy in 2020 will be maintained until 2021 to lower the deficit to 5.7 percent of the GDP, or some Rp1,006.37 trillion, as the government will continue to prioritize COVID-19 response and continue development projects.
The state expenditure in 2021 is expected to reach Rp2,705 trillion and revenue at Rp1,746 trillion.
"The deficit is still quite wide since next year, the discourse across the world regarding fiscal and monetary policy is to not revoke the policy too early since the economy can record a plunge again," she cautioned.
The minister expounded that the government's strategic policy in 2021 will encompass education, with budget allocation of Rp550.5 trillion; Rp169.7 trillion for health; Rp421.7 trillion for social protection; Rp413.8 trillion for infrastructure; Rp104.2 trillion for food security; Rp15.7 trillion for tourism; and Rp29.6 trillion for ICT to support public activities highly dependent on internet lines. Related news: Vaccine, health protocol prerequisite for economic recovery: BI
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EDITED BY INE
Translator: Astrid FH, Sri Haryati
Editor: Suharto
Copyright © ANTARA 2020
