April 2023 Regional Budget Spending Realization Slows in Many Sectors: What are the Causes?

Finance Minister Sri Mulyani explained that the realization of spending through the Regional Revenue and Expenditure Budget (APBD) in April 2023 weakened compared to the previous year.

In total, the realization of APBD spending reached Rp219.44 trillion. This figure comprises 20.3% of the APBD.

This achievement actually decreased by 5.56% year-on-year (yoy), compared to Rp232.36 trillion in April 2022. This figure comprised 22.9% of the APBD.

Spending realization is divided into two categories. First, spending by type. In this category, all realizations are in the red zone, meaning they weakened.

Personnel spending reached Rp108.82 trillion in April 2023, down 3.29% (yoy) from Rp112.52 trillion in April 2022. The decrease occurred due to a slowdown in the absorption of additional ASN income payments, other revenue expenditures for the Basic Green Coefficient (KDH) and the Regional People's Representative Council (DPRD), and personnel spending for Regional Public Service Agencies (BLUD).

In addition, goods and services spending reached Rp54.9 trillion in 2023, down 7.45% (yoy) from Rp59.31 trillion.

"This is due to the slowdown in the absorption of service spending, goods and services spending for the School Operational Assistance (BOS) program, and goods and services spending for BLUDs," said Sri Mulyani in the *APBN KiTa* press conference on Monday (22/5/2023).

There was also capital expenditure, which reached Rp10.77 trillion in April 2023, down 12.71% (yoy) from Rp12.34 trillion in April 2022.

This decrease occurred due to a slowdown in the absorption of capital expenditure for roads and bridges, buildings, water structures, medical and health equipment, and machinery and equipment.

Other spending in this category reached Rp44.96 trillion, down 6.71% (yoy) from Rp48.19 trillion.

The second category is spending by function. In this category, economic spending reached Rp24.38 trillion in April 2023, down 9.68% from April 2022, which reached Rp26.99 trillion.

In addition, there is health spending, amounting to Rp33.75 trillion in April 2023, down 10.76% (yoy) from Rp37.82 trillion in April 2022.

Of all the functional categories that were in the red, only social protection spending (perlinsos) was in the green. Its realization reached Rp2.58 trillion, up slightly by 1.45% (yoy) from Rp2.54 trillion in April 2022.

"The realization of social protection spending grew by 1.45%, but economic and health functions were slower than last year. This is in line with increasing economic activity and the control of Covid-19 cases," said Sri Mulyani.