Pandemic; Indonesia Predicts State Revenue 10% below Target
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30 April 2020 20:07 WIB
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati projects the state revenue in 2020 will miss the target by 10 percent — an impact of the new coronavirus pandemic. According to the 2020 state budget outlook, this year's revenue is estimated at Rp1,760.9 trillion, just 78.9 percent of the targeted Rp2,233.2 trillion.
"The country's income grew negatively because of the decline in tax income by 5.4 percent, combined with the weakening economy," Sri Mulyani said in an online hearing with House of Representatives' Commission XI, Thursday, April 30.
This year's tax revenue is expected at just Rp1.462,6 trillion, or Rp403 trillion less than the initial target. The decline is due to a tax shortfall of Rp388,5 trillion that is exacerbated by pol price wars at the beginning of Q1.
The government is also expecting non-tax revenues to miss this year's target. The current projection is Rp297 trillion by year-end, or 26.9 percent less than what was targeted.
Meanwhile, Sri said that this year's expenditure had inflated by Rp405.1 trillion for mitigating Covid-19. With this situation, 2020's state budget will experience a 5.07 percent deficit of the GDP.
Francisca Christy Rosana
