Indonesia's budget deficit reaches 1.72% of GDP in first half: govt

Indonesia's budget deficit reaches 1.72% of GDP in first half: govt

A screenshot of Finance Minister Sri Mulyani Indrawati holding a press conference following a plenary cabinet session in Jakarta on Monday (July 5, 2021). (ANTARA/Indra Arief)

Jakarta (ANTARA) - Indonesia’s state budget recorded a deficit of 1.72 percent of the GDP (gross domestic product), or 283.2 trillion Indonesian rupiahs, in the first six months of 2021, according to Minister of Finance, Sri Mulyani Indrawati.

During the first half of the year, state revenue rose by 9.1 percent year on year (yoy) to Rp 886.9 trillion, or 50.9 percent of the target of Rp1,743.6 trillion set under the 2021 state budget, she said at a press conference following the plenary cabinet session in Jakarta on Monday.

The government also continued to intensify state spending to move the economy amid the pressures of the COVID-19 pandemic, the minister noted. State spending in the first half of this year reached Rp1,170.1 trillion, or 42.5 percent of the target set under the 2021 state budget, she disclosed.

"The realization of the first semester of the deficit reached 1.72 percent, or Rp283.2 trillion," she said.

Providing details on state income for the period, Indrawati said tax revenue collections reached Rp557.8 trillion, an increase of 4.9 percent compared to the previous year. In the first half of 2020, state revenue had experienced a fairly deep contraction of 12 percent to reach just Rp531.8 trillion.

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In the first half of this year, revenue from customs reached Rp122.2 trillion, an increase of 31.1 percent compared to the previous year, when it grew by just 8.8 percent (yoy), the minister informed.

The realization of non-tax state revenues (PNBP) reached Rp206.9 trillion, an increase of 11.4 percent compared to last year, when it recorded a 185.7-percent (yoy) growth.

Meanwhile, government expenditure swelled 9.4 percent (yoy) in the first half of this year to Rp1,170 trillion. The biggest increase was seen in central government spending, which grew 19.1 percent (yoy).

"From ministry/institutional spending, it was Rp449.6 trillion, up 28.3 percent compared to the previous year. Meanwhile, non ministerial departments/institutions amounted to Rp346.7 trillion, an increase of 8.9 percent," Indrawati said.

Fund transfers to regions and village funds (TKDD) continued to experience problems, the minister noted. In the first half of this year, the realization of village funds stood at Rp373.9 trillion, reflecting a contraction of 6.8 percent compared to the year-ago period, she said.  

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