APBD Spending Realization Increased in the First Semester of 2023

The Ministry of Finance recorded that the realization of Regional Revenue and Expenditure Budget (APBD) spending reached Rp399.55 trillion in the first half of 2023. This figure grew by 6.23% compared to the same period the previous year (year-on-year/yoy), which was Rp376.04 trillion in June 2022.

"If we look at the total target of APBD spending, Rp399.55 trillion is only 31% of the spending target. This is almost the same as the central government, meaning the spending rate of both the central and regional governments is still below 40%," said Sri Mulyani, Minister of Finance, in an online press conference, *Our State Budget July 2023 Edition*, Monday (24/7/2023).

Ani, her nickname, further detailed the realization of APBD spending, categorized by type and function.

By type, employee spending was the largest in this compartment, reaching Rp181.08 trillion in June 2023. This figure increased by 11.01% (yoy), from Rp163.12 trillion previously.

In her presentation, Ani stated that this increase was driven by the increase in the realization of employee salary and allowance spending for Civil Servants (ASN), additional ASN income spending, and additional income based on other objective considerations.

Still in the type compartment, the second largest spending was on goods and services, amounting to Rp103.79 trillion in June 2023. This figure increased slightly by 1.84% (yoy) from Rp101.91 trillion previously.

Third, capital expenditure amounted to Rp26.06 trillion in June 2023. It increased by 5.63% (yoy) from Rp24.67 trillion.

"Capital expenditure grew by 5.63% due to increased spending on bridges, water infrastructure, transportation equipment, and office and household equipment," said Ani.

Meanwhile, other expenditures amounted to Rp88.63 trillion in June 2023, up 2.53% (yoy) from Rp86.44 trillion.

For spending per function, the largest was health, reaching Rp64.34 trillion in June 2023. This figure increased slightly by 2.56% (yoy) from Rp62.73 trillion previously.

Second was the economic function, amounting to Rp49.04 trillion in June 2023, up 4.53% (yoy) from Rp46.92 trillion last year.

Lastly, social protection (perlinsos) reached Rp4.36 trillion in June 2023, up 14.10% (yoy) from Rp3.82 trillion in June 2022.

Ani mentioned that this figure is small compared to the realization of social protection spending by the central government.

"Compared to the central government's operations which reached Rp492 trillion, spending to protect the social community mainly comes from the State Budget (APBN), not from the APBD," said Ani.

The following is a breakdown of spending by type and function based on the realization of the APBD in June 2023 and 2022:

Spending by type:

* Employee spending
June 2023 Rp181.08 trillion
June 2022 Rp163.12 trillion
* Goods and services spending
June 2023 Rp103.79 trillion
June 2022 Rp101.91 trillion
* Capital expenditure
June 2023 Rp26.06 trillion
June 2022 Rp24.67 trillion
* Other expenditures
June 2023 Rp88.63 trillion
June 2022 Rp86.44 trillion

Spending by function:

* Health spending
June 2023 Rp64.34 trillion
June 2022 Rp62.73 trillion
* Economic spending
June 2023 Rp49.04 trillion
June 2022 Rp46.92 trillion
* Social protection spending (perlinsos)
June 2023 Rp4.36 trillion
June 2022 Rp3.82 trillion

(See also: [Realization of State Spending Semester I-2023 Only 41% of Target](https://databoks.katadata.co.id/datapublish/2023/07/27/realisasi-belanja-negara-semester-i-2023-baru-41-dari-target))