With the General Election, Government Spending Increased by 14% in May 2024

The Ministry of Finance (Kemenkeu) reported that state revenue and expenditure budget (APBN) spending from the beginning of the year until May 31, 2024, reached Rp1,145.3 trillion.

This realization is up 14% year-on-year (yoy). As of May 31, 2024, state expenditure has reached 34.4% of the total budget allocation of Rp3,325.1 trillion.

Finance Minister Sri Mulyani explained that this increase in state expenditure was supported by central government spending, which surged 15.4% (yoy) to Rp824.3 trillion in May 2024.

"This means that the central government's acceleration has increased, due to activities such as the February elections which required significant frontloading of spending," said Sri Mulyani in an online press conference on Thursday (27/6/2024).

She detailed that ministry/agency (K/L) spending has reached Rp388.7 trillion, or 35.6% of the 2024 APBN budget. This figure grew by 19.2% (yoy).

K/L spending was used for JKN/KIS payments, social assistance program disbursements, infrastructure development, maintenance of state assets (BMN), and support for election implementation.

Next, the realization of non-K/L government spending amounted to Rp435.6 trillion, up 11% (yoy). This was channeled for energy subsidies and pension benefit payments.

Transfers to regions (TKD) also increased by 10.5% (yoy) to Rp321 trillion, equivalent to 37.4% of this year's budget.

On the other hand, the realization of state revenue as of May 2024 reached Rp1,123.5 trillion, equivalent to 40.1% of the 2024 APBN target, totaling Rp3,325.1 trillion.

This lower revenue than expenditure resulted in an APBN deficit of Rp21.8 trillion. This figure plummeted 110.7% (yoy) from the same period last year, which recorded a surplus of Rp204.1 trillion.