Government Spending Always Exceeds Revenue

13/09/2016 12:56 WIB

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Realization of State Revenue and Expenditure 2011-2015

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Government Spending Always Exceeds Revenue

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Realization of State Revenue and Expenditure 2011-2015

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State expenditure has consistently exceeded revenue in the State Budget (APBN). This has resulted in an annual deficit. State revenue realization from 2011-2015 increased by 24.6 percent to Rp 1,508 trillion, while state expenditure during the same period rose by 39.5 percent to Rp 1,806.5 trillion.

In the Revised State Budget (APBNP) 2016, the government targeted revenue of Rp 1,786.2 trillion, an 18.5 percent increase from the 2015 realization. Meanwhile, government expenditure this year is targeted at Rp 2,082.9 trillion, a 15.3 percent increase from the 2015 realization.

The increasing need for development financing and government spending necessitates a deficit budget policy in formulating the APBN to achieve national development targets. A deficit budget policy serves as a stimulus to drive domestic economic growth while maintaining fiscal sustainability.

"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."