JAKARTA - State revenue as of January 2020 was recorded at Rp 103.7 trillion, 4.6% of this year’s State Budget target. In addition, non-tax state revenue grew 2.3%, while corporate income tax revenue dropped due to global economic weakening.
“As of January, state revenue was still contracted by 4.6%. Economic weakening in 2019 was reflected in corporate income tax revenue, because companies adjusted their tax payments,” Finance Minister Sri Mulyani Indrawati told the APBN Kita (Our State Budget) press conference at the Ministry of Finance headquarters, Wednesday (19/2).
In terms of spending realisation, Rp 139.8 trillion or 5.5% of the State Budget target was absorbed with a 9.1% contraction due to frontloading from ministries and government agencies for social assistance spending, particularly the Families of Hope Programme (PKH) and the Basic Food Card.
“Last year there was frontloading, and there was significant increase in social assistance in January. For this year, changes in social assistance are being normalised so that spending is done for 12 months ahead. This is why the comparison is not apple to apple,” said Ms Indrawati.
As of January, the primary balance position was negative 13.6 with a deficit of Rp 36.1 trillion, while debt refinancing was recorded at Rp 68.2 trillion. (MS)