Sri Mulyani: State Budget Deficit Hits Rp219 Trillion as of May 2021

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati confirmed that the deficit of the State Budget (APBN) reached Rp219 trillion as of May 2021. “Or 1.32 percent of the Gross Domestic Product (GDP),” she said in a work meeting with Committee IV of the Regional Representatives Council (DPD) on Monday, June 21.

The deficit increased by 22.24 percent compared to that of May 2020 at Rp179.4 trillion or 1.16 percent of GDP.

State revenue, meanwhile, was recorded at Rp726.4 trillion, up by 9.31 percent compared to that of May 2020. “State revenue grew by 9.31 percent, mainly driven by tax revenues, particularly Excise and Export Duties,” she added.

State expenditure jumped by 12.05 percent to Rp945.7 trillion compared to May 2020 at Rp843.9 trillion. “[It was] mainly driven by spending on goods to support the recovery, such as the COVID-19 treatment cost and labor-intensive capital expenditure, such as roads, irrigation, and networks,” she explained.

Besides, the unspent funds or SiLPA in May 2021 was Rp90 trillion. Sri claimed the figure was more efficient than last year's May 2020 that reached Rp178.5 trillion.

The minister went on to say that the financing was higher at Rp309.3 trillion as the government front-loaded its financing in order to anticipate interest rates or inflation occurring in the United States.

“Our economic recovery will keep relying on the handling of health issues (the COVID-19 pandemic), then we implement PEN (the national economic recovery program) and conduct structural reforms. We will continue to do these three programs in a balanced fashion because all of them are vital and irreplaceable,” Sri Mulyani remarked.

Read: Sri Mulyani Allocates Rp150 Tn for COVID-19 Budget for Next Year

HENDARTYO HANGGI