Finance Minister Sri Mulyani Indrawati highlighted that government spending in the 2021 State Budget will center on economic and societal restoration from the impact of the COVID-19 pandemic, including by offering free COVID-19 vaccination.
"In 2021, we will use fiscal instruments as a catalyst and driving force for expediting national economic recovery," the minister stated during the 2021 Indonesian Economic Outlook here on Tuesday.
Indrawati remarked that in 2021, state spending was estimated at Rp2,750 trillion, including central government spending, reaching Rp1,954 trillion, with a deficit projected to reach 5.7 percent of the gross domestic product (GDP).
The government has allocated a budget of Rp550 trillion for education, including to support educational reform encompassing the provision of Internet support for students and teachers.
The government’s allocation of Rp169.7 trillion for the health sector does not include the unspent budget in the 2020 national economic recovery program (PEN) that is estimated to reach Rp32-34 trillion.
The social protection budget remains large, with an allocation of Rp408.8 trillion, followed by the budget for food security, reaching Rp99 trillion, to boost food productivity through the revitalization of the food system and food estate program.
The government will also continue infrastructure development, which was earlier delayed in 2020 owing to the pandemic, with a budget apportionment of Rp417.8 trillion.
The minister has made assurance that the health sector remains the government’s main focus to deal with the ongoing COVID-19 pandemic.
The government is also paying attention to the tourism sector, most battered by the pandemic, with an allocation of Rp14.2 trillion directed at restoring tourism, including supporting the transportation sector.
Expenditures in the information and communication technology sector are also budgeted to reach Rp26 trillion.
"We are optimistic that in 2021, we would be able to handle COVID in a much better and more effective manner and that economic recovery can be accelerated in 2021," Indrawati added.
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