Tuesday, October 3, 2023

Second Revision to State Budget Expected as Gov't Expands Covid-19 Relief Package

Triyan Pangastuti
June 5, 2020 | 6:34 pm
A worker walks past a skyscraper in Kuningan, Jakarta. (Antara Photo/Dhemas Reviyanto)
A worker walks past a skyscraper in Kuningan, Jakarta. (Antara Photo/Dhemas Reviyanto)

Jakarta. Indonesia's state budget deficit is set to widen further this year as the government projects lower tax revenue despite bills piling up for its Covid-19 mitigation programs. 

The Finance Ministry now expects Rp 1,033 trillion ($74 billion) in deficit, or 6.34 percent of the country's gross domestic product (GDP).  

The ministry's previous projection was Rp 852.9 trillion, or 5.07 percent of GDP. 

Febrio Kacaribu, the head of Fiscal Policy Agency (BKF) at the Finance Ministry, said President Joko "Jokowi" Widodo will soon issue another presidential regulation to formalize a second revision to the 2020 state budget. 


"The [first] presidential regulation was issued on April 5. We've already discussed the second one in a cabinet meeting," Febrio said on Thursday.

According to Febrio, state revenues are expected to drop to Rp 1,699  trillion from the projected Rp 1,761 trillion. 

Tax, customs and excise revenues are expected to shrink to Rp 1,405 trillion from the Rp 1,463 trillion outlook. 

Non-tax revenues are expected to reach Rp 291 trillion, bringing the total amount of state revenues to Rp 1,699 trillion.

Spending would swell by Rp 124.5 trillion to Rp 2,738 trillion from the previous outlook of Rp 2,613.8 trillion, as the government increases spending for Covid-19 mitigation and its economic recovery program. 

Expenses for the government's Covid-19 mitigation efforts have increased to Rp 73 trillion. 

The government also has to spend another Rp 76 trillion to pay for electricity subsidy.

To save money, it has already cut spending at ministries and other government institutions to Rp 787 trillion from Rp 837 trillion. 

Meanwhile, non-ministerial expenditure has increased to Rp 1,187.9 trillion, including Rp 590 trillion for the economic recovery program. 

The Village Fund budget has also slightly increased to Rp 764 trillion from Rp 763 trillion.

Tags: Keywords:


News 8 hours ago

A Riled Trump Sounds Off Outside the New York Fraud Trial

The trial could cost him control of Trump Tower and other prized properties.
News 12 hours ago

Constitutional Court Upholds Validity of Job Creation Law

In a tight decision, all nine Constitutional Court justices voted 5-4 in favor of the government.
Special Updates 12 hours ago

Bekasi Sneakers Expo Returns to Summarecon Mall Bekasi

As many as 22 tenant booths of various brands --including Wilio Indonesia, SNDRN, and Yozugoods-- joined the 2023 Bekasi Sneakers Expo.
Business 13 hours ago

ASEAN, Canada A Step Closer to Concluding Trade Deal by 2025

ASEAN and Canada are moving a step closer towards that target as both sides have recently held their fifth round of negotiations.
News 13 hours ago

Prosecutors Seek Death Penalty for Three Accused of Killing Nine Victims

According to the indictment, at least seven of the victims were related to the suspected mastermind of the serial murders.