Jakarta – The House of Representative passed the 2020 state budget bill into law during a plenary meeting on Tuesday.
Finance Minister Sri Mulyani Indrawati said that the 2020 state budget would focus on human capital and social security development, infrastructure development, fiscal incentives for research and development, village and regional funds procurement and the strengthening of university endowments.
"The 2020 fiscal policy will be prioritized for stimulating economic growth to be above 5 percent and maintaining development achievements such as poverty reduction, employment and equal distribution in the economy," Sri Mulyani said at the House on Tuesday.
In the 2020 state budget, the government and the House agreed to set the budget deficit at Rp 307.2 trillion (US$21.8 billion), equal to 1.76 percent of gross domestic product (GDP).
With such a deficit level, the government could still stimulate the economy and implement several programs for maintaining economic growth, increasing employment rates and reducing poverty levels, Sri Mulyani said.
Sri Mulyani added that the state revenues targeted in the 2020 state budget would be Rp 2.2 quadrillion, of which Rp 1.865 quadrillion would come from taxes and Rp 367 trillion from non-tax revenues.
Meanwhile, she said that the state expenditure was targeted to be Rp 2.54 quadrillion, an 8.5 percent increase from the 2019 estimate. The funds would be allocated to cover central government and local administration expenses, both of which account for Rp 1.683 quadrillion and Rp 856 trillion respectively.
Earlier in the day, the House's budget committee chairman Kahar Muzakir said that eight of the 10 factions had agreed on and approved the bill and passed it law. Meanwhile, two other factions agreed with the notes. (asp)