Indonesia posts $2 billion budget surplus in January: Finmin

JAKARTA, Feb 22 (Reuters) – Indonesia posted a budget surplus of $2 billion in January as tax revenues soared amid stronger economic recovery from the pandemic and high commodity prices , said its finance minister on Tuesday.

Sri Mulyani Indrawati said the surplus underscored Indonesia’s strong fiscal position and reaffirmed other economic indicators showing the recovery of Southeast Asia’s largest economy had continued this year, after GDP growth accelerated to 5% in the last quarter of 2021.

She expected GDP growth of between 4.8% and 5.5% this year, compared to 3.7% in 2021.

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The strong fiscal performance also meant the government was on track to scale back pandemic-era fiscal stimulus and restore a budget deficit ceiling of 3% of GDP next year, the minister said.

Overall revenue rose 54.9 percent year on year in January to 156 trillion rupees ($10.86 billion), with tax collection up 65.6 percent, she said. said, adding that the government had also received additional revenue through a tax amnesty from January to June.

The government spent 127.2 trillion rupees last month, down 13% from a year ago, taking the budget to a surplus of 28.9 trillion rupees or 0.16% of GDP, Sri Mulyani said.

This compared to a deficit of 45.5 trillion rupees in January 2021.

The government has redeemed more bonds than it issued in January, resulting in a net negative issuance of 15.9 trillion rupees, Sri Mulyani said, adding that it may further scale back plans. this year’s bond issue using cash carried over from last year.

The ministry has received parliamentary approval to sell Rs 991.3 trillion of bonds this year, excluding refinancing and buybacks, assuming a budget deficit of 4.85% of GDP throughout the year.

Sri Mulyani had previously said the 2022 deficit could approach 4%. It did not offer new forecasts on Tuesday.

($1 = 14,361.0000 rupees)

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Reporting by Gayatri Suroyo and Stefanno Sulaiman; Editing by Martin Petty

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