Indonesia’s state budget deficit is better than India to Malaysia

JAKARTA, – Minister of Finance Sri Mulyani assessed that the realization of the 2020 state budget deficit (APBN) was better than that of other countries. This is reflected in the results of an increase in state spending on the realization of economic growth.

Last year, the Ministry of Finance (Kemenkeu) recorded a state budget deficit of Rp 956.3 trillion. This figure is equivalent to 6.09 percent of gross domestic product (GDP).

Sri Mulyani said that the budget deficit was lower than India, the Philippines and Malaysia.

“We compare it to India with a deficit of 13 percent, the Philippines at 8.1 percent, and Malaysia at 6.5 percent,” he said in a virtual discussion, Wednesday (3/3/2021).

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Apart from the lower realization of the budget deficit, the results of the increase in the state budget are also considered to be better than those of the three countries. This is reflected in the realization of higher economic growth.

The former World Bank Managing Director assessed that although Indonesia’s economy contracted by 2.07 percent last year, the realization was still better than India to Malaysia.

“They are faced with a much deeper economic contraction. This means that they are spending a larger budget, but the economy is still very badly contracted,” he said.

Even so, the state treasurer emphasized that his party should not be complacent with these achievements. With the threat of the corona virus still real, the Ministry of Finance still needs to maintain the stability of the Indonesian State Budget.

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“Indonesia still needs to maintain vigilance because Covid is still spreading,” he said.

For information, this year the APBN deficit is set to reach 5.7 percent of Gross Domestic Product or Rp. 1,006.4 trillion.

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