Central Government Spending Allocation up to July 2022: What is it for?

The Ministry of Finance (Kemenkeu) reported that the realization of central government spending reached Rp1,031.24 trillion by July 2022. This realization is equivalent to 44.8% of the 2022 State Budget (APBN) allocation.

The realization of central government spending consists of spending by ministries/agencies (K/L) and non-K/L. The realization of K/L spending was recorded at Rp490.65 trillion by July 2022.

The realization of K/L spending comprised personnel expenditure of Rp151.98 trillion by July 2022, or 57.10% of the APBN allocation. This personnel expenditure was used for the payment of salaries and allowances for civil servants/TNI/Polri, including the 13th-month salary and THR (religious holiday allowance).

Furthermore, the realization of goods and services spending reached Rp192.45 trillion by July 2022, or 56.95% of the allocation. This realization was mainly used for various regular programs and programs supporting the handling of the impact of the Covid-19 pandemic and national economic recovery.

Then, the realization of capital expenditure was recorded at Rp70.2 trillion in July 2022. This realization was used for capital expenditure on equipment and machinery, buildings, and roads, networks, and irrigation.

Meanwhile, the realization of social assistance (bansos) reached Rp76.01 trillion by July 2022. The utilization of bansos by July 2022 was used for the disbursement of PKH (Family Hope Program) assistance in stages I and II, the disbursement of Sembako (basic food) cards, and the implementation of direct cash assistance (BLT) to maintain public purchasing power amid rising commodity prices.

In addition, bansos were also used for JKN (National Health Insurance) premiums from January to July, with an average of 87.4 million recipients, and the disbursement of education assistance by the Ministry of Education and Culture and the Ministry of Religious Affairs through the Indonesia Pintar Basic and Secondary Education Program for 12.1 million students and the KIP Kuliah (Indonesia Smart Card for College Students) program for 609,650 students.

Meanwhile, non-K/L spending amounted to Rp540.59 trillion in the same period. The realization of this spending was largely driven by payments for electricity and fuel compensation and subsidies, as well as for the Kartu Prakerja (Pre-Employment Card) program.