JAKARTA - President Joko Widodo has predicted that the 2020 State Budget deficit will reach 5.07% as the country struggles to curb the impact of the coronavirus (Covid-19) pandemic.
As a result, the government has issued a policy concerning Budget relaxation above 3% up until 2022 in Government Regulation in Lieu of Law No. 1/2020 on the State Financial Policy and Financial System Stability to Handle the Covid-19 Pandemic.
According to Mr Widodo, the regulation was issued to anticipate the possibility of a Budget deficit. "Afterwards, we will return to a maximum deficit of 3% starting from 2023," he said in an official statement on the Cabinet Secretariat's' website, Tuesday (31/3).
In addition, Mr Widodo has also asked the House of Representatives' support in ratifying the regulation and signing it into law. Per the regulation, the government will provide an additional budget of Rp 405.1 trillion for expenses on health supplies, social protection, tax incentives, and economic recovery funding. (LK/MS)