The state budget deficit, as of August 2021, had reached Rp383.2 trillion, or 2.32 percent of the gross domestic product (GDP), according to Finance Minister Sri Mulyani Indrawati.

The government has targeted state budget deficit at 5.7 percent in 2021.

“The state budget deficit as of August had reached Rp383.2 trillion as compared to the Rp503.8-trillion deficit last year. It still shows a deficit though having declined by 23.9 percent (yoy),” Indrawati noted here on Thursday.

The minister noted that the decline in deficit was indicative of a stronger fiscal consolidation and economic recovery.

“The fiscal policy is strengthened, and the economy has grown in a positive trend. We can say that the countercyclical fiscal policy is still used while at the same time there is an economic rebound, recovery, and slow consolidation,” she noted.

The ministry recorded that as of August 2021, the state revenue had reached Rp1,177.6 trillion, or 67.5 percent of the target of Rp1,743.6 trillion set in the state budget.

The state revenue comprised Rp741.3 trillion of tax revenue, Rp158 trillion of customs revenue, and Rp277.7 trillion of non-tax revenue (PNBP).

The revenue had increased 13.9 percent (yoy) as compared to Rp1,034.3 trillion in 2020.

Meanwhile, state expenditure was recorded at Rp1,560.8 trillion, as of August, or 56.8 percent of the state budget target at Rp2,750 trillion and grew 1.5 percent as compared to Rp1,538.1 trillion during the corresponding period of 2020.

Budget financing had reached Rp528.9 trillion, or 52.6 percent of its target at Rp1,006.4 trillion, a contraction of 20.6 percent as compared to last year’s budget financing realization at Rp666.3 trillion.

Source: Antara News