2024 Social Assistance Budget: Exceeds Healthcare Budget, but Below Education Budget

A report from the Indonesian Ministry of Finance (Kemenkeu) shows that the realization of the budget for social assistance (bansos), education, and health fluctuated over the past 10 years.

Of the three, the realization and allocation of the health function budget were the smallest. Realization for this item tended to be below Rp100 trillion per year. Only in certain years was a significant portion of the budget absorbed.

These years include 2020 (Rp105 trillion), 2021 (Rp211.32 trillion), and 2022 (Rp124.46 trillion). These three years coincided with the handling and transition period of the Covid-19 pandemic.

The allocation for health spending in the 2024 State Budget (APBN) is set at Rp97.42 trillion.

Health spending in 2024 is directed towards accelerating the reduction of stunting; providing medical equipment and building hospitals in eastern Indonesia; improving the quality and distribution of health workers; strengthening health technology and domestic pharmaceutical independence; and strengthening the National Health Insurance (JKN) program.

(Read also: [Many Social Assistance Programs Since the Pandemic, Has Poverty Decreased?])

The realization and allocation of health spending in 2022-2024 are lower than social assistance spending, as shown in the attached graph.

Social assistance has actually been increasing since 2019, exceeding Rp100 trillion. The figure then skyrocketed in 2020, during the Covid-19 outbreak, reaching Rp202.5 trillion. In 2023, the outlook for social assistance realization is Rp146.5 trillion. The allocation for 2024 has been increased to Rp157.3 trillion.

In 2024, the social assistance budget will be used for various programs, such as direct cash assistance (BLT), staple food assistance, and social rehabilitation programs for vulnerable groups.

This year, the government is also targeting improvements to the non-cash social assistance disbursement mechanism to facilitate beneficiaries and increase financial inclusion.

Despite exceeding the health budget, social assistance spending is still below education spending.

Education spending has consistently been above Rp120 trillion per year since 2014 until the 2024 allocation. The 2023 outlook is estimated to reach Rp183.08 trillion. The allocation for 2024 is set at Rp225.07 trillion.

Several priority outputs in the education function include the Indonesia Pintar Program for 20.8 million students; the KIP Kuliah Program for 1.1 million students; and allowances for non-civil servant teachers for 577,700 teachers.

(Read also: [The Education Sector, the Biggest Priority of the 2024 State Budget])