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Jakarta Post

Deficit widens to $46.3b as govt spending picks up

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Tue, October 20 2020   /  01:00 am
Illustration of rupiah in the time of coronavirus(JP/Mecca Yumna NP)

Indonesia’s budget deficit has risen to Rp 682.1 trillion (US$46.3 billion) and is on track to reach the highest level in history this year as government spending increases and tax revenue dwindles, creating a need for debt financing. The budget gap hit 4.16 percent of the gross domestic product (GDP) in September, well within the government’s forecast of a record-high deficit of 6.34 percent, Finance Ministry data shows. Finance Minister Sri Mulyani Indrawati said the latest data indicated an acceleration in government spending that would prop up the economic recovery. “The government has succeeded in accelerating spending, which will be able to boost the economy in the third and fourth quarters,” Finance Minister Sri Mulyani Indrawati told reporters on Monday. “This is an all-out effort from us to revive the economy.” State spending rose 15....