The Difference in Budget Deficit Values During the SBY and Jokowi Eras: Who Had the Largest?

Low income and high expenditure can cause a budget deficit. In the context of macroeconomics, this budget deficit can occur when government spending exceeds its revenue in the same fiscal year (FY).

However, Sri Mulyani, Minister of Finance, stated that the budget difference or deficit occurred due to financial flexibility. Reported by *Media Indonesia*, Sri Mulyani mentioned that the State Revenue and Expenditure Budget (APBN) is a state financial instrument designed with flexibility to meet the country's needs.

Ani, as she is also known, claimed that the state budget deficit is not due to an intentional effort to create a budget shortfall. According to her, the deficit arises from the government's duty to maintain the economy and protect the people.

"We create this deficit not because we are fond of deficits, let alone being said to be fond of debt. It's a design; Indonesia needs this," she said on February 3, 2023.

Referring to Article 24 Paragraph (1) of Law No. 19/2023 concerning the State Budget for Fiscal Year 2024, there are several ways to address budget deficits if they exceed the targets set in the APBN.

The government can use Excess Budget Balance (SAL) funds, cash loan withdrawals, issuance of State Bonds (SBN), and/or utilization of the cash balance of public service agencies as additional financing.

*Databoks* has compiled records of budget deficits over the past 20 years, specifically two periods, each covering the administrations of President Susilo Bambang Yudhoyono (SBY) and Joko Widodo (Jokowi), based on the Central Government Financial Report (LKPP) and the 2024 APBN. The details are as follows:

SBY Era (2004-2013)

* 2004

The realization of state revenue and grants in 2004 amounted to Rp403.37 trillion, reaching 99.90% of the budget. Meanwhile, expenditure realization amounted to Rp427.18 trillion, reaching 99.33% of the budget.

From this calculation, the realized budget deficit in 2004 was Rp23.80 trillion. This figure is 9.37% lower than the Rp26.27 trillion budgeted in the 2004 APBN.

* 2005

Revenue in FY 2005 reached Rp495.22 trillion, Rp44.90 trillion lower than the target in the APBN. Expenditure realization amounted to Rp509.63 trillion, reaching 90.19% of the budget.

The realized deficit in FY 2005 was Rp14.40 trillion. This is 57.76% lower than the Rp24.94 trillion budgeted in the FY 2005 APBN.

* 2006

The realization of state revenue and grants in FY 2006 was Rp637.98 trillion, and state expenditure realization was Rp667.12 trillion. From these figures, the budget deficit was Rp29.14 trillion.

* 2007

The realization of state revenue and grants in FY 2007 was Rp707.81 trillion, reaching 101.98% of the budget. Meanwhile, state expenditure realization was Rp757.65 trillion, reaching 100.70% of the budget.

From this calculation, the realized deficit in FY 2007 was Rp49.84 trillion, while the FY 2007 Revised APBN (APBN-P) budgeted a deficit of Rp58.29 trillion.

* 2008

State revenue realization in 2008 was recorded at Rp981.61 trillion, or 109.68% of the FY 2008 Revised APBN (APBN-P). Meanwhile, state expenditure realization was Rp985.75 trillion, or 99.62% of the FY 2008 APBN-P.

The realized deficit in FY 2008 was Rp4.12 trillion, while the FY 2008 APBN-P budgeted a deficit of Rp94.50 trillion.

* 2009

The realization of state revenue and grants in FY 2009 was Rp848.76 trillion, or 97.45% of the Revised APBN (APBNP). Meanwhile, state expenditure realization was Rp937.38 trillion, or 93.66% of the APBN-P. The realized deficit in 2009 was Rp88.62 trillion, or 68.25% of the APBN-P.

* 2010

State revenue and grants in FY 2010 were Rp995.27 trillion, or 100.29% of the FY 2010 APBN-P. Meanwhile, state expenditure realization was Rp1,042.12 trillion, or 92.54% of the APBN-P. Therefore, a budget deficit of Rp46.85 trillion occurred. In addition, the 2010 budget included a spending suspension of minus Rp16.77 billion.

* 2011

The realization of state revenue and grants in FY 2011 was Rp1,210.60 trillion, or 103.48% of the APBN-P. Expenditure realization was Rp1,295.00 trillion, or 98.05% of the APBN-P.

Based on these realized figures, a budget deficit of Rp84.40 trillion occurred, which is still 55.99% of the budgeted amount.

* 2012

State revenue realization in 2012 was Rp1,338.11 trillion, or 98.52% of the APBN-P. Expenditure realization was Rp1,491.41 trillion, or 96.33% of the APBN-P.

Based on this calculation, a budget deficit of Rp153.30 trillion occurred in 2012, or 80.64% of the budgeted amount.

* 2013

The realization of state revenue and grants in 2013 was Rp1,438.89 trillion, or 95.80% of the APBN-P. Meanwhile, state expenditure realization was Rp1,650.56 trillion, or 95.62% of the APBN-P.

Based on the realization of state revenue and grants minus the realization of state expenditure, a deficit of Rp211.67 trillion occurred, or 94.42% of the budgeted amount.

(See also: How does the Indonesian government debt compare between the SBY and Jokowi eras?)

Jokowi Era (2014-2024)

* 2014

The realization of state revenue and grants in FY 2014 was Rp1,550.49 trillion, or 94.81% of the APBN-P. Meanwhile, state expenditure realization was Rp1,777.18 trillion, or 94.69% of the APBN-P. The 2014 budget deficit was Rp226.69 trillion, or 93.87% of the budgeted amount.

* 2015

State revenue and grants reached Rp1,508.02 trillion, or 85.60% of the amount set in the FY 2015 APBN-P. Meanwhile, state expenditure realization was Rp1,806.51 trillion, or 91.05% of the budgeted amount, resulting in a budget deficit of Rp298.49 trillion. This figure exceeded 134.15% of the target set in the APBN of Rp222.50 trillion.

* 2016

State revenue and grants this year reached Rp1,555.93 trillion, or 87.11% of the amount set in the FY 2016 APBN-P. Meanwhile, state expenditure realization was Rp1,864.27 trillion, or 89.50% of the amount budgeted in the FY 2016 APBN-P, resulting in a deficit of Rp308.34 trillion. This deficit figure soared to 103.92% of the target set at Rp296.72 trillion.

* 2017

The realization of revenue and grants in 2017 was Rp1,666.37 trillion, or 95.99% of the APBN-P. Meanwhile, state expenditure realization was Rp2,007.35 trillion, or 94.10% of the APBN-P.

Based on the realization of revenue and grants and the realization of state expenditure, a budget deficit of Rp340.97 trillion occurred, or 85.84% of the budgeted amount.

* 2018

Indonesia's revenue and grants in 2018 were Rp1,943.67 trillion, or 102.58% of the APBN. Meanwhile, state expenditure realization was Rp2,213.11 trillion, or 99.66% of the APBN.

Based on this calculation, there was a deficit of Rp269.44 trillion. This value is equivalent to 82.67% of the target deficit budgeted in the APBN of Rp325.93 trillion.

* 2019

Revenue and grant receipts this year were Rp1,960.63 trillion, or 90.56% of the APBN. Meanwhile, state expenditure realization was Rp2,309.28 trillion, or 93.83% of the APBN.

Based on this calculation, there was a budget deficit of Rp348.65 trillion. This value exceeded the target by 117.79% of the budgeted amount of Rp296 trillion.

* 2020

State revenue and grant receipts in 2020 reached Rp1,647.78 trillion, or 96.93% of the APBN. In addition, state expenditure realization was Rp2,595.48 trillion, or 94.75% of the APBN. The budget deficit was recorded at Rp947.69 trillion, or 91.19% of the budgeted Rp1,039.21 trillion.

* 2021

The realization of state revenue and grants in 2021 was Rp2,011.34 trillion, or 115.35% of the APBN. Meanwhile, Indonesia's expenditure realization was Rp2,786.41 trillion, or 101.32% of the APBN. From this calculation, there was a budget deficit of Rp775.06 trillion, or 77.02% of the budgeted Rp1,006.38 trillion.

* 2022

Indonesia's revenue and grants in 2022 reached Rp2,635.84 trillion, or 116.31% of the APBN. Meanwhile, expenditure realization was Rp3,096.26 trillion, or 99.67% of the APBN. The budget deficit was Rp460.42 trillion, or 54.80% of the budgeted Rp840.22 trillion.

* 2023

This year, state revenue and grants reached Rp2,783.93 trillion. State expenditure was realized at Rp3,121.22 trillion. Expenditure details consist of central government expenditure of Rp2,239.79 trillion and transfers to regions of Rp881.43 trillion.

The deficit was recorded at Rp337.29 trillion, or 70.28% of the budgeted Rp479.92 trillion.

* 2024

Based on Article 7 of Law No. 19/2023 concerning the State Budget for Fiscal Year 2024, the budget deficit is budgeted at Rp522.82 trillion. This deficit value comprises 2.29% of the Gross Domestic Product (GDP).

(See also: State Revenue Down 7.6% as of April 2024, APBN Remains Surplus Rp75.7 Trillion)