Finance Minister pegs April state budget deficit at Rp138.1 trillion

Finance Minister pegs April state budget deficit at Rp138.1 trillion

A screenshot of Finance Minister Sri Mulyani Indrawati speaking at a webinar on budget allocations for accelerating efforts to reduce stunting in Jakarta on Monday (May 24, 2021). (ANTARA / Screenshot TP2AK Youtube Stunting / pri)

Jakarta (ANTARA) - The state budget (APBN) deficit reached Rp138.1 trillion, or 13.7 percent of this year's target of Rp1,006.4 trillion, as of April, 2021, according to Finance Minister Sri Mulyani Indrawati.

The deficit of Rp138.1 trillion accounted for 0.83 percent of the gross domestic product (GDP), she said adding, the deficit target for this year has been fixed at 5.7 percent of the GDP.

"The state budget deficit up to April has slightly improved. (The deficit of) Rp138.1 trillion is also relatively smaller (compared to March, 2021), and we will try to maintain this without disrupting the trend of economic recovery, ” Indrawati told a joint meeting of Commission XI of the House of Representatives in Jakarta on Monday.

When viewed on a quarterly basis, the deficit realization up to April was lower than the previous month, when it was recorded at Rp144.2 trillion, she added.

The deficit arose from lower state revenue collection of Rp585 trillion, or just 33.5 percent of the state budget target of Rp1,743.6 trillion, she explained.

State income grew 6.5 percent year on year, which was higher than the realization of state revenue as of April, 2020, when it grew by 3.2 percent, or Rp549.4 trillion.

The realization of state revenue include tax revenue of Rp374.9 trillion, or 30.5 percent of the state budget target of Rp1,229.6 trillion. The revenue from tax contracted 0.5 percent compared to the same period of last year, when it was pegged at Rp376.6 trillion.

Meanwhile, customs and excise revenues were recorded at Rp78.7 trillion, or 36.6 percent of the Rp215-trillion target, or up 36.5 percent year on year.

"We hope that the export recovery, manufacturing will continue to contribute and the momentum can be seen starting April and May (2021),” Indrawati said.

In addition, non-tax state revenue (PNBP) swelled by 14.9 percent (yoy), with realization reaching Rp131.3 trillion, or 44 percent of the Rp298.2-trillion target, due to revenue flow from the commodities side.

Furthermore, for grants, Rp 0.1 trillion, or 5.7 percent of the state budget target of Rp0.9 trillion, was realized, reflecting a growth of 94.2 percent year on year.

On the other hand, state spending as of April, 2021 reached Rp723 trillion, or 26.3 percent of the Rp2,750 trillion target, reflecting an increase of 15.9 percent year on year.

"State spending is a powerful instrument to encourage economic recovery with growth up to April reaching 15.9 percent," the Finance Minister said.

The minister further informed that central government spending was recorded at Rp489.8 trillion, or 25.1 percent of the target of Rp1,954.5 trillion, reflecting a year-on-year growth of 28.1 percent.

Central government spending included ministries / institutions expenditure of Rp278.6 trillion, or 27 percent of the Rp1,032-trillion target, and showed a 37.2-percent increase compared to the same period of last year when it was recorded at Rp203.1 trillion.

Meanwhile, non-ministries / institutions expenditure stood at Rp211.3 trillion, or 22.9 percent of the target Rp922.6 trillion. Year-on-year, the expenditure showed an increase of 17.7 percent. (INE)

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