Economics & Macro

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Early 2024 Central Government Spending Exceeds Pandemic Era Levels

Cindy Mutia Annur 26/02/2024 16:06 WIB

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According to the Ministry of Finance's report, central government spending (BPP) reached Rp96.4 trillion in January 2024. This realization is the highest since the Covid-19 pandemic.

Realization of Central Government Spending per January (2020-2024)

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Early 2024 Central Government Spending Exceeds Pandemic Era Levels

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Realization of Central Government Spending per January (2020-2024)

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According to the Ministry of Finance's report, the realization of central government spending (BPP) reached Rp96.4 trillion in January 2024.

This figure is equivalent to 3.9% of the BPP budget ceiling in this year's State Revenue and Expenditure Budget (APBN), which totals Rp2,647.5 trillion.

Finance Minister Sri Mulyani stated that the January 2024 BPP realization was higher than in January of the previous year.

The January 2024 BPP realization also exceeded the initial year-end spending during the Covid-19 pandemic in 2021, as shown in the graph above.

"This reflects the spending trend in January, and because this is an election year, it is indeed influenced by the acceleration of election-related spending," said Sri Mulyani in the APBN KiTa press conference on the Kemenkeu YouTube account, Thursday (22/2/2024).

Sri Mulyani said that in January 2024, the realization of ministry/agency (K/L) spending reached Rp44.8 trillion, or 4.1% of the Rp1,090.8 trillion ceiling.

According to her, K/L spending was driven, among other things, by election preparation spending worth Rp16.5 trillion until February 12, 2024.

In addition to election spending, in January 2024 there was K/L spending realization in the form of employee spending of Rp15.3 trillion, used for the payment of salaries and allowances for ASN/TNI/Polri.

Then there was goods spending of Rp12.9 trillion, an increase compared to the January 2023 realization, which amounted to Rp10.1 trillion. This increase was influenced by the payment of operational school assistance (BOS) and the preparation, implementation, and supervision of the election.

Furthermore, capital expenditure reached Rp4.1 trillion, up from the January 2023 realization, which was Rp2.6 trillion. This increase was driven by increased spending on infrastructure in the fields of defense and security of the Polri, and in the health sector.

Meanwhile, the realization of non-K/L spending was recorded at Rp51.6 trillion, equivalent to 3.8% of the Rp1,376.7 trillion ceiling. According to Sri Mulyani, this achievement was supported by the realization of pension benefit payments.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."