State Spending Realization Reaches Rp3,000 Trillion: Here's the Biggest Contributor

Economics & Macro

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Cindy Mutia Annur 05/01/2023 16:04 WIB

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The Ministry of Finance recorded state spending of Rp3,090.7 trillion in 2022. The largest contributor was non-K/L spending, amounting to Rp1,195.2 trillion.

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State Spending Realization Reaches Rp3,000 Trillion: Here's the Biggest Contributor

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Indonesia's State Budget (2021-2022*)

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Based on data from the Ministry of Finance, Indonesia's state expenditure realization in 2022 reached Rp3,090.7 trillion, or 99.5% of the target set in Presidential Regulation 98/2022 of Rp3,106.4 trillion.

Although it did not reach the target, last year's expenditure realization increased by 10.9% year-on-year (yoy) from Rp2,786.4 trillion in the previous year.

This realization is still provisional as it will undergo an audit by the Financial and Development Supervisory Agency (BPKP).

The largest contributor to state expenditure in 2022 came from non-K/L spending, amounting to Rp1,195.2 trillion, a 47.6% yoy increase. This includes energy subsidies and compensation totaling Rp551.2 trillion, a 192.7% increase from Rp188.3 trillion in 2021.

"So, state expenditure surged or increased, and the increase mainly occurred in spending for public protection in the form of subsidies, compensation, and various social assistance," said Finance Minister Sri Mulyani in a press conference on the 2022 State Budget Realization on Tuesday (January 3rd).

Meanwhile, the realization of ministry/agency (K/L) spending amounted to Rp1,079.3 trillion in 2022. This figure is lower than the Rp1,190.8 trillion spent in the previous year.

Furthermore, the realization of transfers to regions (TKD) grew by 3.9%, from Rp785.7 trillion to Rp816.2 trillion in 2022.

State revenue reached Rp2,626.4 trillion in 2022, a 30.6% increase from Rp2,786.4 trillion in the previous year. (Note: There appears to be a discrepancy in the provided text; the previous year's revenue is stated as higher than the 2022 revenue.)

The higher state expenditure compared to state revenue resulted in a state budget deficit of Rp464.3 trillion in 2022. This deficit is equivalent to 2.38% of the Gross Domestic Product (GDP).

Editor : Padjar Iswara

"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."

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State Spending Realization Reaches Rp3,000 Trillion: Here's the Biggest Contributor

State Spending Realization Reaches Rp3,000 Trillion: Here's the Biggest Contributor

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