Three Times Budget Deficit Revisions: What Happens?

Indonesian government reincreased the deficit outlook of the 2020 state budget (APBN) to 6.34 percent of the country’s Gross Domestic Product (GDP) or Rp 1,039.2 trillion. The Finance Minister, Sri Mulyani, revealed that it was the consequence of the Economic Recovery Program (PEN) budget increase to mitigate the COVID-19 pandemic to Rp 677.2 trillion.

In a press conference after a limited meeting to evaluate the program on Wednesday (6/2), she stated that, in the 2020 state budget revision, the state revenue would expectedly fall from Rp 1,760.9 trillion to Rp 1,699.1 trillion. Meanwhile, the state expenditure would increase by Rp 124.5 trillion. Consequently, the government would start conducting deficit spending by using the least risky and costly funding sources. “Including from government’s internal sources, such as budget surpluses, endowment funds, and the Public Service Agency funds,” Sri Mulyani explained.