Primary Balance Deficit Rises to Rp 116.35 Trillion in the First Half of 2021
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Indonesia's primary balance deficit reached Rp 116.35 trillion in the first half of 2021. This deficit increased by 16.8% compared to the same period last year, which was Rp 99.6 trillion.
The primary balance is the difference between state revenue minus state expenditure excluding interest payments on debt. Because there is a deficit, there are no funds to pay interest on the debt; therefore, some or all of the interest payments are made by adding new debt.
In addition to the primary balance, the state budget (APBN) deficit increased by 10.15% year-on-year. The 2021 APBN deficit rose from Rp 257.16 trillion in the first half of 2020 to Rp 283.24 trillion in the first half of 2021.
As a result, the APBN deficit is equivalent to 1.72% of the Gross Domestic Product (GDP). This figure also reached 28.14% of its target in the state budget, which was Rp 1,006.38 trillion.
The Ministry of Finance (Kemenkeu) explained that the increase in the deficit is part of an expansive fiscal strategy to accelerate the recovery of the national economy due to the Covid-19 coronavirus pandemic.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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