2024 State Budget: Jokowi Wants Increased Spending with a Deficit of Rp522.8 Trillion

President Joko Widodo (Jokowi) announced the targets for state revenue, expenditure, and deficit in the 2024 State Revenue and Expenditure Budget (RAPBN).

These targets were announced in a speech on the 2024 State Budget Draft Law and Financial Notes during a plenary session of the Indonesian House of Representatives (DPR RI) 2023-2024 at the DPR Building, Senayan, Jakarta, on Wednesday (16/8/2023).

State revenue is targeted at Rp2,781.3 trillion. According to *Katadata*, this figure is an increase of Rp144.1 trillion from this year's estimate.

The revenue components consist of tax revenue of Rp2,307.9 trillion. Non-tax state revenue (PNBP) is targeted at Rp473 trillion. Jokowi also targets grants of Rp0.4 trillion.

For state expenditure, Jokowi targets a budget of Rp3,304.1 trillion. This figure consists of central government expenditure of Rp2,446.5 trillion and transfers to regions (TKD) of Rp857.6 trillion.

With these revenue and expenditure targets, the budget deficit is targeted at 2.29% of Gross Domestic Product (GDP) or Rp522.8 trillion. The negative primary balance of Rp25.5 trillion is expected to move towards a positive balance.

(See also: RAPBN 2023: Government Targets State Deficit Below 3%)

Citing the Cabinet Secretariat website, Jokowi emphasized the importance of investment climate, business sustainability, and environmental sustainability to optimize state revenue.

Jokowi has prepared several ways to optimize revenue, including maintaining the effectiveness of tax reforms to expand the tax base, improve compliance, and explore potential.

In addition, the implementation of the core tax system, as well as improvements in tax governance and administration. The implementation of the Population Identification Number (NIK) as the Taxpayer Identification Number (NPWP) to increase the tax ratio is also a method employed.

Furthermore, Jokowi will also provide various appropriate and measurable tax incentives, which are expected to encourage faster recovery and increased national investment competitiveness, and accelerate economic transformation.

"Efforts to increase PNBP will continue through improvements in planning and reporting processes using integrated information technology, strengthening governance and supervision, optimizing the management of assets and natural resources, and encouraging service innovation while maintaining service quality and affordability," said Jokowi.

(See also: State Revenue in July 2023 Remains Up Despite Sluggish Customs Revenue)