Central Government Spending Increased by 13.2% in April 2024

The Ministry of Finance (Kemenkeu) reported that the realization of central government spending (BPP) reached Rp591.7 trillion by April 2024.

This figure represents a 13.2% year-on-year (yoy) increase compared to Rp522.7 trillion in April 2023. The April 2024 implementation already fulfills 24% of the State Budget (APBN) allocation.

Finance Minister Sri Mulyani stated that this spending growth is quite high compared to the two previous periods. Central government spending had previously slumped due to the Covid-19 pandemic in 2020 and only recovered in 2021.

"Currently, the increase is driven by spending on the February elections and Ministry/Agency (K/L) expenditures," said Sri Mulyani in a press conference on the Ministry of Finance's YouTube channel on Monday (May 27, 2024).

Sri Mulyani's notes also indicate that the growth in BPP realization is mainly influenced by the payment of holiday allowances (THR) and will normalize in the second quarter of 2024.

The BPP components consist of Ministry/Agency (K/L) spending, amounting to Rp304.2 trillion, representing an 18% yoy increase from Rp257.7 trillion in April 2023. This figure reaches 27.9% of the APBN allocation.

Sri Mulyani stated that K/L spending is influenced by payments for the National Health Insurance (JKN) or Healthy Indonesia Card (KIS), the disbursement of various social assistance programs, infrastructure development, and the implementation of the 2024 General Election.

The other component, non-K/L spending, amounted to Rp287.6 trillion in April 2024. This represents an 8.5% yoy increase from Rp265 trillion in April 2023. The April 2024 implementation of non-K/L spending only fulfills 20.9% of the APBN allocation.

Sri Mulyani explained that non-K/L spending is influenced by the realization of energy subsidies and pension benefit payments.

(See also: [State Revenue Down 7.6% as of April 2024, APBN Remains Surplus at Rp75.7 T](https://databoks.katadata.co.id/datapublish/2024/05/28/pendapatan-negara-turun-76-per-april-2024-apbn-tetap-surplus-rp757-t))