Sri Mulyani Calls The 2023 State Budget A Deficit Of IDR 347.6 Trillion

Minister of Finance Sri Mulyani Indrawati said the 2023 State Revenue and Expenditure Budget (APBN) closed by recording a deficit of IDR 347.6 trillion or equivalent to 1.65 percent of Gross Domestic Product (GDP).

Sri Mulyani said that the deficit was lower than the target in Presidential Regulation (Perpres) Number 75/2023 which amounted to Rp479.9 trillion, and was still lower than the target in the 2023 State Budget which amounted to 598.2 trillion.

"Our 2023 APBN design is a deficit (nominal) of IDR 598.2 trillion or 2.84 percent of GDP, then lower (Perpres 75/2023) to IDR 479.9 trillion or 2.27 percent, and currently the realization of lower deficits is IDR 347.6 trillion or 1.65 percent of GDP," said Sri Mulyani in a press conference on the APBN KITA, Tuesday, January 2.

Sri Mulyani explained that the APBN deficit came from the realization of state spending which was higher than the realization of state revenues.

The realization of state revenue throughout 2023 amounted to Rp2,774.3 trillion or reached 105.2 percent of the Presidential Regulation target of 75/2023 amounting to Rp2,637.2 trillion.

This realization figure rose 5.3 percent compared to state revenue in 2022 of IDR 2,635.8 trillion.

Meanwhile, the realization of state spending reached IDR 3,121.9 trillion.

This realization increased from the Presidential Decree target of 75/2023 which amounted to Rp3,117.2 trillion or reached 100.2 percent.

Meanwhile, this realization grew 102 percent compared to the initial target of the 2023 State Budget which reached IDR 3,061.2 trillion.

This expenditure also increased by 0.8 percent when compared to the realization in 2022 which amounted to IDR 3,096.3 trillion.

"The performance of the 2023 State Budget is very solid and credible. The state budget continues to function in any atmosphere," he said.

The primary balance was closed by recording a surplus of IDR 92.2 trillion.

Sri Mulyani said that the positive primary balance was good news, because from the beginning the deficit was designed.

In addition, Sri Mulyani said that initially in the 2023 State Budget, the primary balance was designed to be a deficit of IDR 256.8 trillion, and in Presidential Decree 75/2023 a deficit of IDR 38.5 trillion was designed.

"Primary balance when we originally designed it was about a deficit, but the realization turned out to be a surplus of Rp92.2 trillion," he said.

Sri Mulyani explained that this prime balance surplus was the first time after experiencing a deficit for the past 10 years.

This is the first prime balance surplus since 2012 to nearly 10 years. This is something extraordinary," he said.