Jakarta, 20/02/2020 MoF – Minister of Finance Sri Mulyani Indrawati explained the performance of the State Budget in January 2020 at the APBN KiTa(State Budget Performance and Facts) press conference in the Juanda Hall of Juanda I Building Ministry of Finance, Jakarta on Wednesday, (19/02).
She reported the realization of state revenue had reached Rp103.7 trillion or 4.6% of the 2020 State Budget target. Non-Tax State Revenue (PNBP) grew by 2.3%. Corporate income tax (corporate) also fell due to the global economic slowdown such as the corona virus-negative issue.
“This January, state revenues are still contracting 4.6. The economic slowdown in 2019 was starting to be seen in corporate income tax, they made adjustments to their tax payments. We need to see (the result) until April. Non-Tax State Revenue (PNBP) grows 2,3% so that the total taxation and total state revenue contracted by 4.6%,” explained the Minister.
In the expenditure realization, Rp139.8 trillion or 5.5% of 2020 State Budget target has been utilized with a 9.1% contraction due to frontloading from Ministries/Institutions (K/L) for spending on social assistance especially the Family Hope Program (PKH) or Indonesian Conditional Cash Transfer Programme and 9 basic needs for food card (Sembako card).
“On the expenditure side, there was a 9.1 contraction. However, we saw an indication of the frontloading of Ministries / Institutions (K/L). Why the contraction in January? Because last year there was a significant frontloading and additional social assistance carried out in January. For this year, social assistance changes are normalized, spent for 12 months. This is why the comparison looked not apple to apple. Last year, January social assistance expenditure was paid in January, this year the social assistance spending remained the same but distributed 12 months, different schemes, from PKH to Sembako cards,” she explained.
Even though Ministries/Institutions expenditure is still negative, there are some positive things such as the transfer of schools’ operational assistance (BOS) funds directly to school accounts. Last year, the transfer seemed to be faster but the transfer to the province or district, not necessarily to the school. Likewise, the Village Fund now goes directly to the village, not through a city or district account. This is what distinguishes the impact on the economy, even though the figure looks negative.
As of January, the primary balance position was negative 13.6 and a deficit of Rp36.1 trillion or 0.21% of the Gross Domestic Product (GDP). Compared to last year, the deficit was 13.6 smaller than Rp22.1 trillion. For a deficit of Rp36.1 trillion, last year’s deficit was Rp45 trillion.
Debt financing until January was Rp68.2 trillion. Nearly half the amount compared to last year.
SilPa (Budget Surplus/Shortage of Budget Financing) decreased to IDR32 trillion compared to IDR78 trillion last year. (nr/ds)