Asia

Indonesia parliament passes President Joko Widodo’s US$185 billion budget for 2021

JAKARTA: Indonesia's parliament on Tuesday (Sep 29) approved President Joko Widodo's US$185 billion budget for 2021, which his finance minister described as both supportive for Southeast Asia's largest economy and also the start of a fiscal consolidation.

The budget, which has a smaller fiscal deficit than this year, was approved by acclamation in parliament.

Advertisement

Advertisement

Total spending for 2021 was agreed at 2,750 trillion rupiah ($185.25 billion), 0.4% bigger than the 2020 budget, but the deficit forecast for 2021 was smaller at 5.7% of gross domestic product, compared with 6.34% this year.

This year's budget deficit outlook is the biggest in decades because of increased spending to respond to the coronavirus pandemic.

READ: Indonesias economic stimulus not enough to stop layoffs; focus should be to contain COVID-19, say experts

Indonesia's economy is set to shrink for the first time since the 1998 Asian financial crisis because of the pandemic this year, within a range of -1.7 per cent to -0.6 per cent. The 2021 budget assumes economic growth will rebound to 5 per cent, said Finance Minister Sri Mulyani Indrawati.

Advertisement

Advertisement

"The 2021 budget is supportive and consolidative. Supportive meaning it will continue to support economic recovery … and consolidative meaning the deficit is smaller," she said in a virtual news conference after the budget was passed.

She said the fiscal consolidation would begin next year to meet a self-imposed target to bring the budget deficit to below 3 per cent of GDP by 2023, but pledged the government would try to maintain growth momentum.

READ: Indonesia puts US$33 billion move of capital city on hold to tackle COVID-19 pandemicRead More – Source
[contf]
[contfnew]

channel news asia

[contfnewc]
[contfnewc]

Related Articles

Asia

Joshua Wong and fellow activists plead guilty in Hong Kong protests trial

bbc– Hong Kong democracy activist Joshua Wong and two fellow campaigners are...

Asia

Works worth Rs 1,559 cr completed in Bihar out of PM s package of Rs 1.25 lakh cr: Congress

PATNA: Congress general secretary Randeep Surjewala on Tuesday claimed that works worth...

Asia

Ex-Trump fundraiser pleads guilty to illicit lobbying on 1MDB, China

WASHINGTON: A former top fundraiser for President Donald Trump pleaded guilty Tuesday...

Asia

Covid: Delhi more “open” than Mumbai

NEW DELHI: With Unlock 5.0 underway from October 15, more businesses and...