Gov’t to Make Adjustments to Mandatory Spending
Date 29 Juli 2020
Mandatory spending in the State Budget bill 2021 will be revised to adjust to the condition during COVID-19 pandemic, according to Minister of National Development Planning/ Head of the National Development Planning Agency Suharso Monoarfa.
First, a plan to widen the 2021 state budget deficit to 5.2 percent from its initial plan of 4.3 percent will be discussed with the House of Representatives (DPR) and will be officially submitted to the President in the upcoming bill on the State Budget and its Financial Note.
Second, around Rp179 trillion of the budget will be spent, in which some of that are categorized as mandatory spending such as for education and health sectors. According to the President’s directives, budget for education sector amounting to Rp38.6 trillion and budget for health sector amounting to Rp9.5 trillion will be revised.
“Regarding reforms on health sector, we will push the budget allocated for economic recovery and improvement of national healthcare system. Thus, it will create double effect,” the Minister said.
As for education sector, he added, the Government must work on how the people particularly lower income people can get strong signal to study at home during the pandemic. In fact, study at home incurred additional expenses.
“Those with low purchasing power will be at disadvantages. How we address the issue since online study required 1 GB of data per student and phone credit of Rp300,000 does not last for a week,” the Minister said adding that Information and communication technology (ICT) is crucial so that the budget allocated for it must be revised. (TGH/EN)
Translated by : Rany Anjany
Reviewed by: Mia Medyana