Indonesia's budget deficit reached 0.34% of GDP in February 2019

STATE BUDGET - JAKARTA. The Ministry of Finance on Tuesday (19/3) reported a 2019 deficit of the state budget (APBN) per end of February of Rp 54.61 trillion. The deficit is equivalent to 0.34% of gross domestic product (GDP)

The realization of the budget deficit is higher than the budget deficit of the same period in 2018 amounting to Rp 48.31 trillion or 0.33% of GDP.

Total state revenues and grants in February 2019 reached Rp 217.21 trillion or grew 8.21% on an annual basis. Realization of this state income is equivalent to 10.03% of the revenue target in the APBN which amounts to Rp 2,165.11 trillion.

Meanwhile, state spending as of February 2019 grew by 9.15% or reached Rp 271.83 trillion. The expenditure realization reached 11.04% of the target of Rp 2,461.1 trillion.

As of February 2019, the primary balance recorded a deficit of Rp 20.56 trillion. The deficit figure is higher than in the same period last year which was only Rp 13.88 trillion. This number of primary balance deficits is equivalent to 102.22% of the 2019 state budget target which is just Rp 20.12 trillion.

Meanwhile, budget funding reached Rp 197.56 trillion or reached 66.74% of the target of Rp 296 trillion. Budget financing consists of debt financing of Rp 198.37 trillion or 55.2% of the goal of Rp 359.25 trillion, as well as financing investment of Rp 2 trillion to the Public Service Agency (BLU), and providing loans of Rp 1.2 trillion.

Thus, the budget deficit ratio to GDP in February 2019 was 0.34% or valued at Rp 54.61 trillion. Meanwhile, the target ratio of the deficit to GDP is only 1.84% or smaller than the previous year of 2.19% of GDP.

Finance Minister Sri Mulyani said that the implementation of 2019 to February 2019 State Budget was still going well and on target. On the other hand, the government remains vigilant about economic challenges and global uncertainty going forward.

"We are still consistent in maintaining a reduction in the budget deficit under 2% and the primary balance to be closer to the balance," she said.