Indonesia’s budget deficit reaches 1.47 per cent of GDP at end-October

Indonesia recorded a Rp379.3 trillion budget deficit at the end of October, equivalent to 1.47 per cent of gross domestic product, Finance Minister Suahasil Nazara said. He said revenue and spending remained on track after 10 months of budget implementation.

Speaking at a Finance Ministry press conference in Jakarta, Nazara reported revenue of Rp2,618 trillion, up 23.9 per cent from a year earlier. That represented 83 per cent of the annual budget target.

Tax revenue increased 20.8 per cent to Rp2,064 trillion, meeting 76.6 per cent of its target. This included tax receipts of Rp1,796.8 trillion and Rp267.2 trillion from customs and excise. Non-tax revenue rose 37 per cent to Rp551.8 trillion, reaching 120.2 per cent of the budget target.

Expenditure totalled Rp2,997.2 trillion, a 15.6 per cent year-on-year increase and 78 per cent of planned annual spending. Of that, Rp2,343.6 trillion was spent by the central government, which used 74.4 per cent of its annual allocation.

Ministries and government agencies accounted for Rp1,239.1 trillion of central spending, with non-ministry and agency expenditure at Rp1,104.5 trillion. Regional governments received transfers totalling Rp653.6 trillion.

The primary balance showed a Rp114.8 trillion surplus, against an initial budget projection of a Rp89.7 trillion deficit.