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Government to raise 2021 Budget deficit to 5.2%

28 July 2020 13:16

JAKARTA. The government has raised the 2021 State Budget deficit to 5.2% of the GDP due to the coronavirus (COVID-19) crisis.

As announced by Finance Minister Sri Mulyani Indrawati after a limited meeting on Tuesday (28/7), the deficit increase was decided by President Joko "Jokowi" Widodo. Previously, the government and the House of Representatives had agreed on a deficit increase of 4.15% of the GDP.

The deficit increase will impact on the government's rising expenditure reserve. According to Ms Indrawati, Indonesia has Rp 179 trillioon in expenditure reserve.

The fund will be prioritised for sectors such as food security, industrial area and infrastructure development, information and communication technology, and health and education. (AM/MS)

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