The 2024 State Budget Deficit Is Projected To Be 2.7 Percent, Airlangga: Still Good, Below 3 Percent

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that he opened his voice regarding the estimated 2024 State Revenue and Expenditure deficit (APBN) which reached 2.70 percent of Gross Domestic Product (GDP) or equivalent to Rp609.7 trillion.

Airlangga said that he estimated that the deficit figure was still in a safe position, because it had not yet reached the level of 3 percent.

"That's still good, it's still below 3 percent," said Airlangga on the Indonesia Stock Exchange (IDX), Jakarta, Tuesday, July 9.

In addition, he continued, the lower limit for fiscal deficits in the Draft State Budget and Expenditure Revenue (RAPBN) for the 2025 Fiscal Year will be 2.29-2.82 percent.

"Yesterday, the discussion was up to 2.8 percent, so 2.7 percent is still in good range. In 2025, the range is below 3 percent, it's still safe," explained Airlangga.

Previously, Minister of Finance Sri Mulyani Indrawati projected that the deficit in the State Revenue and Expenditure Budget (APBN) for Fiscal Year 2024 would reach 2.7 percent of Gross Domestic Product (GDP) or in nominal terms Rp609.7 trillion.

This figure is higher than the target set by the government in the 2024 State Budget Law, which is 2.29 percent of GDP or equivalent to IDR 522.8 trillion.

"We project that the 2024 State Budget will close its deficit from primary balance to Rp110.8 trillion and the total deficit will reach Rp609.7 trillion. This means that there is an increase in the deficit deficit by 2.29 percent to 2.7 percent of GDP," he said at the Working Meeting of the DPR RI Budget Agency, Monday, July 8.

Sri Mulyani estimates that state revenues until the end of 2024 will reach IDR 2,802.5 trillion or grow 0.7 percent (yoy) driven by maintained and positive economic activity, implementation of tax reform, increasing BUMN dividends and improving ministry/institutional services (K/L).

Meanwhile, state spending until the end of 2024 is estimated to reach IDR 3,412.2 trillion or 102.6 percent of the 2024 State Budget ceiling or grew 9.3 percent.

Sri Mulyani conveyed this in line with the role of the State Budget as a shock absorber to maintain growth momentum, protect purchasing power and support the achievement of national development priority targets.

In addition, he said, to finance the swelling of the 2024 State Budget deficit of Rp609.7 trillion, we will use it through the Remaining More Budget (SAL) of Rp100 trillion and the issuance of state securities (SBN) remains lower by Rp214.6 trillion.

"Although the deficit has increased, the issuance of SBN has not increased, instead it is lower than IDR 214.6 trillion," he said.

To note, the Budget Agency (Banggar) of the DPR RI and the government have lowered the lower limit for fiscal deficits in the Draft State Budget and Expenditure Revenue (RAPBN) for the 2025 Fiscal Year to 2.29-2.82 percent from the previous 2.45-2.8 percent.