Indonesia’s state budget deficit reaches 2.2 percent of GDP

Jakarta (ANTARA) - Indonesia's budget deficit during the period from January to December 2019 had reached Rp353 trillion, or 2.2 percent of the gross domestic product (GDP), Finance Minister Sri Mulyani Indrawati stated here on Tuesday.

The deficit was higher than the deficit of Rp296 trillion targeted in the 2019 state budget, which would have been 1.84 percent of the GDP.

It was an increase of 31 percent (yoy) from the 2018 deficit of Rp269.4 trillion, equal to 1.82 percent of the GDP, Indrawati remarked.

"Our deficit in 2019 is at the level of 2.2 percent of the GDP to reach Rp353 trillion owing to a shortfall in revenue, while state expenditure can be maintained," she remarked.

The government had booked Rp1,957.2 trillion in revenue last year, or 90.4 percent of the state budget target at Rp2,165.1 trillion.

However, an audit on the State Audit Board (BPK) data has yet to be completed.

"This is the closing data as of December 31, but there might be some changes within the next one or two months since it was still under the audit of the BPK team," she remarked.

The minister noted that the state revenue had risen 0.7 percent (yoy) in comparison with Rp1,943.7 trillion in 2018 in spite of a global economic slowdown.

She expounded that the state revenue in 2019 was accrued from tax revenue of Rp1,545.3 trillion; non-tax revenue, Rp405 trillion; and grants, Rp6.8 trillion.

State expenditure during the period had reached Rp2,310.2 trillion, or 93.9 percent of the state budget target set at Rp2,461.1 trillion, comprising Rp1,498.9 trillion of the central government's expenditure and Rp811.3 trillion of regional transfer and village fund.

Indonesia's budget deficit was lower than Vietnam that had recorded 4.4 percent of the GDP, China, 6.1 percent; South Africa, 6.2 percent; India, 7.5 percent; the United States, 5.6 percent; and Brazil, 7.5 percent of the GDP.

"The government's combined efforts to keep its fiscal deficit has boosted the economy, and despite its wider deficit, it is still far below those of other peer emerging countries," Indrawati added.

Source: Antara News

Related posts