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Jakarta, CNBC Indonesia – Finance Minister Sri Mulyani Indrawati emphasized that nothing in the world can predict when the Covid-19 pandemic will end. Therefore, it cannot be determined to what extent the pressure on the economy.
This was transmitted by Sri Mulyani during the presentation of the Information on the Review of Law No. 2 of 2020 on the Stipulation of Perppu No. 1 of 2020 on the state financial policy and the stability of the financial system for the management of the Covid pandemic -19 in the Constitutional Court.
“The government needs to convey that so far there is no country that can predict and know when the Covid-19 pandemic will end and it is also uncertain how deep the economic slowdown and worsening will be as a result of the Covid-19 pandemic,” he said, the Thursday (8/10) / 2020).
 Photo: Finance Minister Sri Mulyani attended the DPR plenary meeting with the agenda of the government’s response to the faction’s views on the 2019 P2 APBN bill (CNBC Indonesia / Muhammad Sabki). |
Therefore, to cope with the impact of this pandemic, the Government must prepare a large budget. In this case, the government has established a budget for economic recovery of IDR 695.2 trillion.
With an increased budget to deal with the resulting shocks, the budget deficit must be widened from the limit. Where under normal circumstances the maximum budget deficit is 3% and is currently more flexible.
The widening of the deficit is regulated through the Presidential Regulation instead of Law (Perppu) number 1 of 2020 or it has currently become Law number 2 of 2020. With this regulation, the budget deficit this year is set at 6, 3. 4%.
Meanwhile, for 2021, the budget deficit is set at 5.7%. However, if Covid-19 continues for a long time, the deficit is likely to widen.
“The longer the Covid-19 pandemic lasts, the greater the impact,” he said.
[Gambas:Video CNBC]
(dru)
