2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

AS OF NOVEMBER 2021, STATE BUDGET CONTINUES ITS GOOD PERFORMANCE Improved revenue and expenditure signaled that economic recovery continue to take place 2021 2020 Account (IDR T) Budget¹ Realized As of Nov % of YoY Budget Budget (%) Realized As of Nov 30th % of Budget YOY (%) 30th 1,700.0 1,423.1 83.7 (15.1) 1,743.6 1,699.4 97.5 19.4 1,198.8 925.3 77.2 (18.6) 1,229.6 1,082.6 88.0 17.0 Customs & Excise 205.7 183.5 89.2 4.1 215.0 232.3 108.0 26.6 Revenue Tax Revenue Non-tax Revenue 294.1 305.0 103.7 (15.9) 298.2 382.5 128.3 25.4 Expenditure 2,739.2 2,308.2 84.3 12.8 2,750.0 2,310.4 84.0 0.1 Central Government 1,975.2 1,560.2 79.0 20.6 1,954.5 1,599.3 81.8 2.5 Expenditure Regional Transfer & Village 764 748.0 97.9 Funds (0.7) 795.5 711.0 89.4 (4.9) Primary Balance (700.4) (584.1) 83.4 471.1 (633.1) (281.8) 44.5 (51.8) Surplus (Deficit) (1,039.2) (885.1) 85.2 139.3 (1,006.4) (611.0) 60.7 (31.0) % to GDP (6.34) (5.73) (5.70) (3.63) 1,039.2 1,101.5 106.0 161.3 1,006.4 642.6 63.8 (41.7) Financing Note (1) Presidential Regulation 72/2020 Source: Ministry of Finance Outlook for budget deficit in 2021: 5.0-5.2% of GDP served as a soft landing toward fiscal consolidation in 2023 Revenue: As of November 2021, Government revenue continues performing strongly, and each component of revenue recorded strong rebound. Revenue predicted to surpass its target ☐ Expenditure: Government spending improved consistently along disbursement acceleration in previous period. Financing: Efficient budget financing as the financing needs reduced along improved revenue as well as usage optimization of budget surplus. 62
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