DEPOK (eNBe Indonesia) - Finance Minister Sri Mulyani Indrawati reported on Thursday (September 23) that state spending or expenditure reached Rp1,560.8 trillion as of August 31, 2021, grew 1.5% year on year (y/y).
Government expenditures reached Rp1,087.9 trillion and transfers to regions and village fund reached Rp472.9 trillion.
The spending or expenditure by ministries and government institutions rose 60.4% y/y, accelerated by the economic recovery program (PEN) as well as strict restrictions on public activities in 2020 at the beginning of the pandemic.
Said expenditure was used to procure 94.5 million doses of vaccine, provide assistance to 11.8 million micro business segment, treatment costs for 453,280 Covid-19 patients, and school assistance fund to 7.6 million students.
The realization of capital expenditures still grew significantly by 75.2% y/y, influenced by payments and acceleration of basic infrastructure/advanced connectivity projects in 2020 as well as equipment procurement, including for the construction and preservation of dams, irrigation networks, railway lines, roads, bridges, and hospital infrastructures.
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The realization of the budget for social protection grew by 5.4% y/y, utilized for the distribution of various social assistance, subsidies, and other government assistance as a cushion for poor and vulnerable families affected by the pandemic.
The benefits that have been provided to the community through the social protection budget include the distribution of basic food cards to 16.1 million KPM, assistance for the family of hope program for 9.9 million poor families (KPM), the distribution of cash social assistance to 10 million KPM, and pre-employment program to 3.6 million participants, national health assitance (JKN) contribution to 96.5 million PBI, electricity discounts to 32.6 million customers, distribution of village direct cash assistance (BLT) to 5.5 million KPM, and internet quota assistance to 36.1 million students and educators.
The realization of the health budget grew 52.7% y/y, mainly due to the increase in Ministry of Health spending for the procurement of vaccines and treatment of Covid-19 patients, health workers incentives, and other Covid-19 treatments. The realization of subsidies, both energy and non-energy subsidies, grew 37.3% y/y and 4.6% y/y respectively, used for subsidies for fuel, 3-kg LPG cylinders, electricity, loans for supermicro segment (KUR) and guarantying service fees (IJP) interest subsidies.
The realization of tranfer to regions and village funds reached Rp472.91 trillion or 59.5% of the 2021 state and spending (APBN) target, lower than 73% realization in January-August 2020. The PEN program is the main instrument in the context of handling health and economic recovery as a result of the pandemic, both in 2020 and 2021.
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The total budget allocation for the PEN Program in the 2021 is set at Rp699.43 trillion, higher than Rp695.2 trillion in 2020. In its development, the PEN Program for 2021 was again increased to Rp744.77 trillion, mainly to provide additional support for health care and social protection amid the increase in Covid-19 cases due to the transmission of the Delta Variant.
The realization of the PEN program until September 17, 2021 reached Rp395.92 trillion or 53.2% of the ceiling. Realization in the health sector reached Rp97.28 trillion, social protection sector Rp112.87 trillion, and priority programs Rp59.51 trillion, realized for work-intensive ministries/agencies, tourism, food security and regional loan facilities.
Until August 2021, realized state revenues amounted to Rp1,177.6 trillion or grew 13.9% y/y, experiencing improvements both in terms of taxation, customs and excise as well as non tax state revenue (PNBP).
Tax revenues reached Rp741.3 trillion, grew 9.5% y/y. Revenue of customs and excise also grew 30.4% y/y to Rp158.0 trillion. Excise revenue rose 17.7% to Rp115.01 trillion.
Import duty receipts increased 11.8% to Rp24.09 trillion export duties revenues reached Rp18.89 trillion, surpassing the target set on the state budget this year. Revenue of PNBP grew 19.6% y/y to Rp277.7 trillion.
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So, the state budget deficit is still maintained at Rp383.2 trillion or 2.32% of GDP. Meanwhile, the realization of budget financing reached Rp528.9 trillion or 52.6% of the APBN target.
Sri Mulyani noted that entering the third quarter (Q3) of 2021, the economic recovery will continue, while efforts to suppress the increase in Covid-19 cases require significant additional costs.
However, flexible, anticipatory and responsive measures to the Government's handling have shown tangible results with the growth of economic activity and public consumption.
The positive trend in state revenue is expected to continue as the economy improves, state expenditures continue to be encouraged in the form of stimulus, but are maintained in an effort to fiscal consolidation, so that the impact is a decrease in the budget deficit which affects the decrease in financing needs.