Minister of Finance, Sri Mulyani Indrawati, reveals that the 2024 State Budget (APBN) recorded a deficit of Rp507.8 trillion (US$31.3 billion), equivalent to 2.29 percent of Gross Domestic Product (GDP), but still better than the projected deficit for the first semester of 2024 at 2.7 percent of GDP.
“The APBN deficit was ultimately maintained at the same level as the initial design, which was 2.29percent. So, we see from the initial design of 2.29 percent, it worsened to 2.70 percent, and returned to a controlled condition,” Sri Mulyani told a press conference on Monday, January 6, 2024.
This deficit shows that state revenue is smaller than government spending. The primary balance was also recorded as having a deficit of Rp19.4 trillion (US$1,19 billion).
Tax shortfall
Throughout 2024, state revenue was recorded at Rp2,842.5 trillion (US$175.4 billion), an increase of 2.1 percent compared to 2023 which was Rp2,783.9 trillion (US$171.8 billion). This revenue exceeded the target set in the 2024 outlook of Rp2,802.5 trillion (US$172.9 billion).
However, tax revenue only reached 97.2 percent of the target in the 2024 State Budget Law of Rp1,988.9 trillion (US$122.7 billion), with a shortfall reaching Rp56.5 trillion (US$3.5 billion). This is the first tax revenue shortfall in the last four years.
“Despite the pressure on state revenue, we can still recover,” Sri Mulyani said.
State revenue also comes from customs and non-tax state revenue (PNBP), which also support the total achievement.
On the other hand, state spending in 2024 was recorded at Rp3,350.3 trillion (US$206.8 billion), an increase of 7.3 percent compared to the previous year’s realization. This spending covers various priority government programs, including supporting fiscal health to support the government of President Prabowo Subianto and Vice President Gibran Rakabuming Raka.
Sri Mulyani emphasized that this report is still temporary and has not been audited.
“The 2024 State Budget that we are presenting here is non-audited. This is data based on cases that we have garnered and calculated,” she said.
