TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said Indonesia’s state budget deficit as of September 30, 2021, reached Rp452 trillion or 2.74 percent of Gross Domestic Product (GDP).
The figure plummeted by 33.7 percent compared to last year's. “This illustrates ongoing fiscal consolidation, and indirectly means that the economic recovery is going as we expected,” said Sri at a press conference on Monday, October 25.
According to her, the drop was driven by a significant hike in state revenues and controlled state spending at the end of September 2021.
At the end of last month, the state revenue reached Rp1,354.8 trillion, up by 16.8 percent over the same period last year. The budget realization also reached 77 percent of GDP.
“Compared to August's 13.9 percent growth, this [economic growth in] September is even higher. This shows something positive. We hope that the acceleration of economic activity is translated into revenues in taxes, customs, and non-tax revenues,” Sri Mulyani said.
In detail, Indonesia recorded income reaching Rp850.1 trillion from taxes or 69.1 percent of the target, Rp182.9 trillion from customs and excise, and Rp320.8 trillion from non-tax revenues. Meanwhile, state spending until the end of September 2021 amounted to Rp1,806.8 trillion.