Sri Mulyani Indrawati: Outlook on the 2024 State Budget and Budget Deficit Challenges

Jakarta, INTI - Finance Minister Sri Mulyani Indrawati, along with several senior officials, announced the projected 2024 State Budget (APBN) which is expected to provide a strong foundation for Indonesia's economic growth amid various global challenges. This outlook was presented during a meeting with the DPR Budget Committee on July 9, 2024. In this meeting, attended by key government and economic figures, Sri Mulyani outlined important data on state revenues, state expenditures, and the budget deficit which are the main focal points.

State Revenues

Based on the data presented, total state revenues in 2023 reached IDR 2,783.9 trillion, with first-semester realization amounting to IDR 1,831.5 trillion. For 2024, state revenues are projected to increase to IDR 2,807.6 trillion. Tax revenues remain the largest contributor, with IDR 2,154.2 trillion in 2023, expected to rise to IDR 2,184.7 trillion in 2024.

• Tax Revenues: In 2023, tax revenues amounted to IDR 1,867.9 trillion and are projected to increase to IDR 1,898.8 trillion in 2024.
• Customs and Excise Revenues: Recorded at IDR 284.9 trillion in 2023 and expected to rise to IDR 285.9 trillion in 2024.
• Non-Tax State Revenues: Showing IDR 613.3 trillion in 2023 and projected to slightly decrease to IDR 602.2 trillion in 2024.

State Expenditures

State expenditures also saw significant increases. In 2023, total state expenditures reached IDR 3,121.2 trillion, with projected expenditures in 2024 amounting to IDR 3,142.0 trillion. Central government expenditures constitute the largest part of total state expenditures.

• Central Government Expenditures: Amounted to IDR 2,239.8 trillion in 2023 and projected to increase to IDR 2,257.5 trillion in 2024.
• Ministry/Agency (K/L) Expenditures: Recorded at IDR 1,217.0 trillion in 2023 and expected to rise to IDR 1,247.0 trillion in 2024.
• Non-K/L Expenditures: Amounted to IDR 1,022.8 trillion in 2023 and projected to decrease to IDR 1,010.5 trillion in 2024.
• Transfers to Regions and Village Funds: Reached IDR 1,087.4 trillion in 2023 and expected to increase to IDR 1,094.5 trillion in 2024.

Budget Deficit and Primary Balance

One of the biggest challenges faced in the 2024 State Budget is the budget deficit. In 2023, the budget deficit was recorded at IDR 337.3 trillion, or 1.61% of GDP. For 2024, the budget deficit is projected to increase to IDR 334.3 trillion, or 2.70% of GDP. This increasing budget deficit becomes the main concern for the government in maintaining economic and financial stability.

The primary balance, which is the difference between state revenues and state expenditures before debt interest payments, showed a surplus of IDR 102.6 trillion in 2023. However, in 2024, this surplus is projected to decrease to IDR 50.7 trillion.

Budget Financing

To cover the budget deficit, the government relies on financing from various sources. In 2023, budget financing reached IDR 356.7 trillion, with projections increasing to IDR 356.6 trillion in 2024.

Challenges and Hopes

Sri Mulyani Indrawati emphasized that the 2024 State Budget was prepared considering various global challenges, including global economic uncertainties, commodity price fluctuations, and the impact of climate change. The government is committed to continuously strengthening sustainable and inclusive fiscal policies, ensuring that Indonesia's economic growth remains solid and benefits all citizens.

"In facing various global challenges, we must remain optimistic and work hard to maintain economic stability and improve public welfare. This 2024 State Budget is designed with great caution and based on accurate data and projections," said Sri Mulyani.

With the 2024 State Budget, the government hopes to create an economic environment conducive to investment and development. Increasing state revenues and efficiency in government spending are key to achieving these goals.

However, the challenge of the budget deficit must remain a concern and be managed properly to maintain the country's fiscal health. Success in managing the 2024 State Budget will heavily depend on the government's ability to implement well-planned policies.