Gov’t Draws Up Strategies for 2021 State Budget Realization
Date 2 Desember 2020
The 2021 State Budget will be focused to speed up economic recovery and to strengthen reforms, Minister of Finance Sri Mulyani Indrawati said on Tuesday (2/12).
“Next year, we will spend Rp2,750 trillion to carry on COVID-19 handling programs and carry out vaccination program. We will continue to support several social protection programs and to help several sector and regions to recover from the COVID-19,” the Minister said at the Virtual Press conference on Strategies in the Implementation of the 2021 State Budget heldon Tuesday (2/12).
The 2021 State Budget is also drawn up to support reforms on state revenues in order to strengthen fiscal consolidation and the State Budget. The Budget will also support national economic recovery programs by providing selective tax incentives, relaxing procedures to accelerate national economic recovery, and improving services on non-tax revenue (PNBP).
She went on to say that the 2021 State Budget will be managed in prudent and vigilant manners. The Budget will be allocated to fund restructuration of state-owned enterprises, public service agency (BLU), and Sovereign Wealth Fund, as well as to provide more access to capital for Micro, Small, and Medium-sized Enterprises (MSMEs), Ultra-micro Financing (UMi) Program, and housing for low income people, and to support higher education, research and cultural sectors.
In the 2021 State Budget, Rp550 trillion is allocated for education sector, Rp169.7 trillion for health sector, Rp408.8 trillion for social protection program, Rp417.4 trillion for infrastructure development, Rp99 trillion for food security, Rp14.2 trillion for tourism, and Rp26 trillion for development of Information and Communications Technology (ICT).
In supporting the realization of 2021 State Budget, President Joko “Jokowi” Widodo has ordered all ministers and heads of institutions to implement social protection programs immediately at the beginning of the year or in January.
“The President also instructed ministries/institutions to start the auction (procurement) as soon as possible because the Budget Implementation Entry List (DIPA) has already been distributed. We expect the capital expenditure can be executed in January,” she said.
Given the uncertainty as the impact of COVID-19 which is predicted to persist in 2021, the Minister called on ministries/institutions to uphold flexibility principle in allocating the budget. For that reason, the budget will focus on social assistance programs in which the benefits can be directly felt by the public.
Nevertheless, she reminded all that in spending the budget, ministries and institutions must always uphold transparency, accountability, and fair principles.
“Ministry of Finance will monitor and support the implementation of 2020 State Budget until the end of this year, particularly on the last week of this year. We will also support the realization of 2021 State Budget, particularly which will be executed in January,” she added. (Ministry of Finance PR/UN) (RAS/LW)