2024 State Budget Expenditures Of IDR 3,325 Trillion For Accelerating Economic Transformation

Minister of Finance (Menkeu) Sri Mulyani Indrawati conveyed that the government and the House of Representatives (DPR) agreed to prepare the 2024 State Revenue and Expenditure Budget (APBN) of IDR 3,325.1 trillion.

The funds will be used as an instrument to ward off challenges and threats to economic stability.

"The state spending in 2024 is set at IDR 3,325.1 trillion, consisting of central government expenditures of IDR 2,467.5 trillion and regions of IDR 857.6 trillion," explained Sri Mulyani in the DIPA Submission agenda and the List of Transfer Allocations to Regions for Fiscal Year 2024, Wednesday, November 29.

Sri Mulyani said that state spending is directed to support the acceleration of economic transformation through eradicating extreme poverty, reducing stunting, controlling inflation, increasing investment, strengthening the quality of human resources, accelerating infrastructure development, supporting downstreaming of natural resources, deregulation and institutional strengthening.

In addition, the government will strengthen better spending by encouraging the efficiency of basic needs, focusing on development priorities and being oriented towards results (result-based budget execution).

"Subsidy and social welfare programs will be encouraged to be more targeted and effective through increasing data accuracy, improving distribution mechanisms, and program synergy," he said.

Meanwhile, strengthening the synergy and harmonization of central and regional policies, among others, is through the implementation of the macroeconomic framework and the main points of regional fiscal policy, and strengthening efficiency and effectiveness of better state spending (spending better) which is not only directed at encouraging economic growth.

However, it is also to encourage equitable development, job creation, poverty alleviation, and reduction of gaps between groups and between regions.

Meanwhile, the 2024 State Budget is designed with a deficit of IDR 522.8 trillion, with a focus on budget financing policies in order to cover the deficit carried out through steps to maintain debt financing in a safe and manageable limit and optimize non-debt financing.

In more detail, the budget financing policy in the 2024 State Budget, among others, includes a directed debt financing policy so that debt management is carried out prudently and flexibly, the efficiency of debt costs through financial market development and deepening as well as selective debt loans in order to encourage the provision of infrastructure and technology transfer.

On the other hand, non-debt financing policies are carried out through effective investment financing in supporting economic transformation through empowerment of BLU, BUMN, SMV, and SWF.

Sri Mulyani said that the use of the remaining budget (SAL) would also be optimized to anticipate uncertainty.

The government, he continued, always maintains a solid collaboration between fiscal, monetary, and financial sector policies.

"By paying attention to the direction and strategy of fiscal policy in 2024 which is designed to encourage structural reforms in the context of accelerating inclusive and sustainable economic transformation while still paying attention to innovative, prudent and sustainable budget financing," he said.

According to Sri Mulyani, the budget deficit is expected to be at the level of 2.29 percent of GDP or lower than the 2023 outlook.

In addition, the primary balance can also be maintained towards positive.

"We hope that the DIPA Ministry/Institutions and TKD Allocation List in 2024 can immediately be followed up, so that the 2024 State Budget can be implemented immediately at the beginning of the year, and the community and the economy can immediately feel the benefits," he explained.

Therefore, Sri Mulyani said that the APBN is designed to be anticipatory, alert to potential crises, responsive, prioritize the interests of the community and nationally, and support economic growth.

The state budget must also be able to protect the community, especially the poor and vulnerable in the form of social protection so that Indonesia can reduce poverty, including extreme poverty, which in 2024 is targeted to be close to 0 percent.

In addition, other welfare targets must also be achieved in 2024, such as a decrease in unemployment between 5.0 percent to 5.7 percent, a decrease in the Gini ratio to 0.374 to 0.377, and an increase in the Human Development Index to 73.99 to 74.02.

Furthermore, the 2024 State Budget is designed to accelerate economic transformation, so that the role of the State Budget needs to be optimized for the State Budget as a shock absorber, protecting the people and stabilizing the economy from global shocks (stabilizing food prices, energy security, and controlling inflation).

Then, the State Budget as a development agent (economy transformation administrator) focuses on human capital, physical capital, natural capital and institutional reform and the State Budget as an instrument in realizing people's welfare (decreasing extreme poverty, stunting, and inequality).

Sri Mulyani said that the State Revenue target is IDR 2,802.3 trillion which will be reached through, among other things, the expansion of the tax base as a follow-up to the HPP Law through the PPS follow-up and implementation of NIK as NPWP.

"The government will also optimize excise revenues that will be taken, among others, through intensification and extensification of excise in order to support the implementation of the HPP Law," he said.

In addition, Sri Mulyani added that more optimal use of natural resources will be carried out and increase added value while still paying attention to environmental sustainability through steps such as improving policies and improving natural resource management.