State Expenditure Speeds Up Economic Recovery in Indonesia: Finance Minister

Jakarta: The realization of government spending is the driving force for economic recovery amid the COVID-19 pandemic, Minister of Finance Sri Mulyani has said. 
 
"The State Budget has become a driving force for extraordinary economic recovery, especially in the first semester," Sri Mulyani said in a press statement after attending the Plenary Cabinet Meeting on the Realization of Semester I and the Prognosis for Semester II of the Implementation of the 2021 State Budget (APBN) via video conference on Monday, as quoted by the Cabinet Secretariat's website.
 
The Minister said that the realization of state spending in Semester I has reached Rp1,170.1 trillion or 42.5 percent of the 2021 target. 

Compared to last year’s growth of only 3.4 percent, the budget spending rose to 9.4 percent. 
 
The increase was triggered by the large Central Government spending, which amounted to Rp796.3 trillion, up 19.1 percent from the previous year. 
 
According to her, the spending of ministries and institutions contributed the largest portion, namely Rp449.6 trillion or 43.6 percent of the total ministry/institutional (allocation) expenditure, or increased by 28.3 percent compared to that of the previous year. 
 
Furthermore, non-ministerial/institutions spending in Semester I has reached Rp346.7 trillion or rose by 8.9 percent from previous year. 
 
Meanwhile, the realization of transfers to regions and Village Funds only reached Rp373.9 trillion or contracted by 6.8 percent compared to that of previous year which reached Rp400.9 
 
According to the Minister, total state revenues in the first semester reached Rp886.9 trillion or 50.9 percent of this year’s target of Rp1,743.6 trillion. 
 
This means that state revenues saw a growth by 9.1 percent compared to last year’s 9.7 percent contraction. 
 
Sri Mulyani further said that the biggest contributor to the revenue was tax revenues which reached Rp557.8 trillion or 45.4 percent of the total allocation or rose by 4.9 percent from the previous year. 
 
Overall, said the Minister, the difference between state revenues and expenditures reached Rp283.2 trillion. 
 
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