State Budget Posture Overview 2022: Budget Deficit Decreases But Debt Ratio Increases

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani explained the posture of the 2022 State Budget in a virtual press conference held today, Thursday, April 29.

On this occasion, he said that next year's state revenue is estimated to be around IDR 1,823 trillion or 10.18 of gross domestic product (GDP). Meanwhile, for the expenditure sector, it is stated that it is IDR2,631 trillion or 14.6 of GDP.

From these estimates, it is found that the budget deficit will be in the range of 800 trillion or the equivalent of 4.5 percent of GDP.

This amount is better than the 2021 State Budget, which is believed to create a budget deficit of IDR 1,000 trillion.

This means that there will be an efficiency of around Rp. 200 trillion in the planning of the state budget next year compared to the current period.

For information, the 2021 State Budget targets state revenue of IDR 1,743 trillion, with an expenditure of IDR 2,750 trillion. This composition resulted in a deficit perched at the level of 5.7 percent.

"The 2022 APBN is used as a policy instrument to strengthen recovery and carry out structural reforms," said Sri Mulyani.

Although in nominal terms the amount of the budget deficit has decreased, the debt ratio next year is expected to increase in line with the financing scheme which is still the mainstay of patching the APBN.

It was revealed that the debt ratio in 2022 is believed to be at 43.7 percent to 44.2 percent. This level is above the debt ratio of 21 which is 41 percent of GDP.

In previous VOI reports, Bank Indonesia (BI) announced Indonesia's foreign debt (ULN) in February 2021 of 422.6 billion US dollars or equivalent to Rp6,145.7 trillion (exchange rate: Rp14,542).

The book increased by 4.0 percent compared to the same period in 2020, or higher than January 2021 growth which was recorded at 2.7 percent.