Strategic priorities and accountability for allocating the state budget amid Covid-19 pandemic in Indonesia

Nanang Suparman

doi:10.22437/ppd.v9i1.11640

Abstract

This study explains about strategic priorities of state financial management for handling the Covid-19 pandemic in Indonesia. The impact of this pandemic has caused the country’s financial posture in the state budget to be unbalanced, where receipts have decreased while in state spending has increased very sharply. Such conditions imply that the state budget deficit's widening exceeds the limit set by the law. The method used in this research method is a descriptive qualitative approach using literature data that can provide analysis of strategies to change the state financial management amid the Covid-19 pandemic. The study concluded that the government's strategic response in abnormal situations is an extraordinary matter with budget allocation priorities aimed at public health and safety, including medical personnel, protection and social safety nets for vulnerable people, and protection among business people. However, it requires accountable supervision, especially for the distribution of social assistance funds with experience prone to corruption practices so that it is not on target.

Highlights

Covid-19 pandemic in Indonesia continues to add 21,944 new deaths
Priorities for public health and safety protection The success in managing the state budget can be measured through the achievement of sustainable fiscal policy
To maintain the posture of the State Budget is not included in the critical condition, the government designed a policy to strengthen the revenue side by issuing Government Securities (SUN) in US Dollar (US Bond) denominations with a total nominal of USD 4.3 Billion

Summary

Introduction

Covid-19 pandemic in Indonesia continues to add 21,944 new deaths. The implementation of Large-Scale Social Restrictions (Indonesian: Pembatasan Sosial Berskala Besar = PSBB) policy continues to be extended and tightened supervision and the application of health protocols. The United Nations urges the international community to take any steps to address Covid-19 (News Wires, 2020). The capacity of countries in the world to face challenges of how to create extraordinary efforts to overcome Covid-19 (Bacq et al, 2020). Mitigation of this health disaster should be the priority of every government globally to the lowest point of transmission and mortality (Walker et al, 2020)

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Results

Conclusion