Indonesian Finance Minister Sri Mulyani Indrawati in a meeting (Photo: Antara) Jakarta (VNA) - The Government and House of Representatives of Indonesiapassed the 2021 state budget bill into law on October 1, aiming at acceleratingeconomic recovery amid the COVID-19 pandemic and pushing for structural reformsto boost competitiveness.
IndonesianFinance Minister Sri Mulyani Indrawati said the 2021 State Budget Law targetsIndonesia’s economic growth to rebound to 5 percent next year. This will followan expected economic contraction of 0.6 to 1.7 percent this year.
Economic growthin 2021 will be driven by gradual recovery in domestic consumption andgovernment spending to maintain people’s purchasing power amid the new normal,she said, adding that investment will grow next year because of the base effect and anincrease in development programmes, while exports and imports will rise in linewith global economic recovery.
On that basis, the State budget deficit isexpected to reach 1 quadrillion Rp (61.55 billion USD), or 5.7 percent of the grossdomestic product (GDP), lower than the estimated 6.34 percent of GDP this yearas the government will slightly cut its spending while at the same timeslightly increasing revenue from taxes.
The Government will continue with spending inpriority sectors, including infrastructure, tourism development, foodresiliency and information and communication technology (ICT), among others. Itis also planning to spend 373.2 trillion Rp on debt interest payment next year,or more than 10 percent of the government’s budget./.
IndonesianFinance Minister Sri Mulyani Indrawati said the 2021 State Budget Law targetsIndonesia’s economic growth to rebound to 5 percent next year. This will followan expected economic contraction of 0.6 to 1.7 percent this year.
Economic growthin 2021 will be driven by gradual recovery in domestic consumption andgovernment spending to maintain people’s purchasing power amid the new normal,she said, adding that investment will grow next year because of the base effect and anincrease in development programmes, while exports and imports will rise in linewith global economic recovery.
On that basis, the State budget deficit isexpected to reach 1 quadrillion Rp (61.55 billion USD), or 5.7 percent of the grossdomestic product (GDP), lower than the estimated 6.34 percent of GDP this yearas the government will slightly cut its spending while at the same timeslightly increasing revenue from taxes.
The Government will continue with spending inpriority sectors, including infrastructure, tourism development, foodresiliency and information and communication technology (ICT), among others. Itis also planning to spend 373.2 trillion Rp on debt interest payment next year,or more than 10 percent of the government’s budget./.
VNA
