Gov’t Hands Over 2021 DIPA Earlier to Support Economic Recovery
The Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds (TKDD) for 2021 Fiscal Year was handed over earlier to all ministries and institutions in order to support COVID-19 handling, economic recovery, and various strategic development projects, Minister of Finance Sri Mulyani Indrawati has said.
The Minister made the statement at the handover of the Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds (TKDD) for 2021 Fiscal Year, at the State Palace, Jakarta, Wednesday (25/11).
“The process of drafting and stipulating Law on the State Budget of 2021 was carried out in the midst of the COVID-19 pandemic. The Government and the House of Representatives (DPR) conducted a virtual meeting to discuss this matter while still maintaining transparency, check and balance, as well as good legislative process. We really appreciate the House of Representatives (DPR) and the Regional Representatives Council (DPD) for the extraordinary collaboration during this pandemic,” the Minister said.
The Minister went on to say that the 2021 State Budget was prepared in a challenging situation due to the COVID-19 pandemic which leads to serious disturbance, including disruption to human mobility, slump in global trade, fluctuation in the global financial sector, sharp drop in commodity prices, and the global economy enters recession. Therefore, state financial is a significant instrument in handling the crisis due to the COVID-19 pandemic, including to provide social protection and to support economic recovery.
“Effectiveness of the State Budget to reduce negative impacts of the pandemic depends on its implementation that must be punctual, well-targeted, and with good quality. Thus, coordination and collaboration among ministries, institutions, and regional governments are pivotal,” she said.
In the third quarter of 2020, government consumption through the State Budget expenditure rose by 9.8 percent, while the government spending contracted by 6.9 percent in the second quarter. The acceleration in the State Budget spending will boost economic growth that was affected by COVID-19 spread. This recovery momentum must be maintained as a resource for economic recovery in 2021.
The Government is also projecting the economy to contract by 5 percent next year. However, Sri Mulyani added, the Government will remain vigilant since the risk of economic uncertainty is still high.
“The success in controlling the pandemic is an important factor to accelerate economic recovery in 2021,” she said. (PR of Ministry of Finance/UN) (RF/MMB)