Minister of Finance Sri Mulyani Indrawati reveals that the realization of the State Budget (APBN) deficit until November 2024 has reached Rp401.8 trillion (US$25.2 billion), or equivalent to 1.81 percent of Gross Domestic Product (GDP) and is still below the limit set in the law of Rp522.8 trillion (US$32,7 billion).
“The total budget deficit in the law reaches Rp522.8 trillion. So, this RP 401.8 trillion deficit is still below the target,” Sri Mulyani told the monthly APBN KiTA press conference in Jakarta, on Wednesday, December 11, 2024.
She added that state revenues until the end of November were recorded at Rp2,492.7 trillion (US$156 billion), up 1.3 percent compared to the same period last year (year on year). The figure is equivalent to 89 percent of the 2024 State Budget target. This revenue is obtained from taxes, customs, and non-tax state revenues (PNBP).
“From this year’s target, we have collected 89 percent. State revenue grew 1.3 percent compared to last year,” she cited.
State spending soars
On the other hand, state spending was recorded at Rp2,894.5 trillion (US$181 billion) or a significant increase of 15.3 percent compared to the same period last year. The realization of this spending is equivalent to 87 percent of the State Budget ceiling, which consists of ministry/institution (K/L) spending, non-K/L spending, and transfers to regions.
“The increase is quite sharp, namely 15.3 percent. This can be seen in the posture of state spending which has increased compared to last year,” Sri Mulyani said.
Although the budget deficit occurred, the primary balance recorded a surplus of Rp47.1 trillion. This shows that fiscal management is still under control, amidst global economic challenges and increasing domestic spending needs.
Sri Mulyani emphasized that the 2024 State Budget continues to function as an important instrument to maintain national economic stability. With a significant increase in state spending, the government is trying to encourage development, mitigate the impact of the global economy, and maintain public welfare.
“The State Budget remains an important tool to ensure the national economy runs stably, while supporting various government priority programs,” she concluded.
