JAKARTA - The Ministry of Finance recorded that state revenue realisation until July 2020 contracted by 12.37% year on year (yoy) to Rp 922.25 trillion.
The figure is 54.25% of the State Budget target as stipulated in Presidential Regulation No. 72/2020. In details, tax realisation dropped 12.29% yoy to Rp 710.98 trillion while non-tax state revenue realisation dropped 13.53% yoy to Rp 208.81 trillion.
"The [COVID-19] pandemic remains the primary factor that determines our economic activities and recovery. While improvements from July are continuing, we still see signs of severe vulnerability," Finance Minister Sri Mulyani Indrawati said at the monthly State Budget press conference, Tuesday (25/8).
In the same period, government spending was recorded at Rp 1,252.41 trillion, 45.72% of the Budget ceiling according to Presidential Regulation No. 72/2020. The realisation consisted of central government spending amounting to Rp 793.60 trillion, up 4.25% yoy, and Regional Transfers and Village Funds amounting to Rp 458.82 trillion, down 3.4% yoy.
"The State Budget will continue to exercise its function as part of our effort to maintain the momentum of economic growth in terms of recovery, including revenue such as tax incentives and spending in terms of the social assistance programme, ministries and government agencies, and regional transfers to revive public consumption and confidence in investment," said Ms Indrawati. (MS)