Government Spending Increases, State Budget Deficit in August 2024

The Ministry of Finance (Kemenkeu) reported that the state revenue and expenditure budget (APBN) experienced a deficit of Rp153.7 trillion from the beginning of the year to the end of August 2024.

This condition is a reversal compared to the end of August 2023 (year-on-year/yoy), where the APBN recorded a surplus of Rp147.5 trillion.

"The deficit is still on track with the 2024 APBN. Currently, [the deficit] is 0.68% of the Gross Domestic Product (GDP)," said Finance Minister Sri Mulyani in a press conference on the APBN KiTa, Monday (September 23, 2024).

This APBN deficit is influenced by a decrease in state revenue, while expenditure has increased.

State revenue realization until the end of August 2024 decreased by 2.5% (yoy) to Rp1,777 trillion, equivalent to 63.4% of this year's APBN target, which totals Rp2,802.3 trillion.

"We hope that by the end of the year we can maintain state revenue to continue to pursue the target, although we are facing a challenging situation, especially in several revenue items such as corporate tax revenue," said Sri Mulyani.

Meanwhile, the realization of state expenditure until the end of August 2024 increased by 15.3% (yoy) to Rp1,930.7 trillion, equivalent to 58.1% of this year's budget ceiling, which totals Rp3,325.12 trillion.

According to Sri Mulyani, the increase in state expenditure is influenced by the needs of the general election and social assistance (bansos). "All of that caused state expenditure to increase and reach double digits," she said.

Nevertheless, the state treasurer stated that the primary balance until August 2024 still experienced a surplus of Rp161.8 trillion.