Jakarta – Minister of Finance Sri Mulyani Indrawati said that the State Revenue and Expenditure Budget (APBN) as of October 2022 had a deficit of IDR 169.5 trillion or 0.91% of the gross domestic product (GDP). This was due to the government allocating IDR 452.6 trillion for compensation and subsidies for fuel oil and electricity.
“This is the first (deficit) in 2022, after nine consecutive months of experiencing a surplus,” Sri Mulyani told the press at APBN KITA event, Monday (28/11).
She said the state budget deficit of IDR 169.5 trillion is still far lower than Presidential Regulation 98/2022 concerning the revision of the 2022 APBN. “Based on the APBN law, the total deficit is IDR 841 trillion or 4.5% of GDP. So until October the deficit was at IDR 169.5 trillion or 0.91% of GDP, still far lower than (stipulated by law),” said Mulyani.
Realization of budget financing reached IDR 439.9 trillion, down 27.7 percent (year-on-year). According to Sri Mulyani, as quoted by Antaranews (24/11), “the decline in budget financing illustrates a reversal of direction towards a better state budget.”
The state budget deficit condition means that revenue is smaller than government spending. One of the causes of soaring state spending is because the government pays energy subsidies and compensation to PT Pertamina (Persero) and PT PLN (Persero). Until October 2022, the total funds disbursed reached IDR 452.5 trillion.
Sri Mulyani explained that in 2021 compensation for fuel and electricity would only be IDR 48 trillion. In 2022, the ceiling is raised to around IDR 293.5 trillion and IDR 268 trillion has been paid.
As of October 2022, state revenue was IDR 2,181.6 trillion or grew 44.5%, while state spending reached IDR 2,351.1 trillion or grew 14.2%. (Hartatik)