State Budget On Fire, Debt Withdrawal Shrinked Nearly 50 Percent

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance, Sri Mulyani, said that the slick performance of the State Revenue and Expenditure Budget (APBN) this year had an impact on the decrease in the realization of debt issuance by the government.

According to the Minister of Finance, until July 31, 2022, the realization of budget financing was recorded at IDR 236.9 trillion.

This number has shrunk drastically when compared to the same period in 2021 of IDR 468.8 trillion.

"Realization of financing through debt issuance until July 31 is down by 49.5 percent compared to the same period in 2021", he said through a digital channel when explaining to reporters, Thursday, August 11.

Sri Mulyani detailed that the debt that the government had made up to last month consisted of the issuance of net State Securities (SBN) of IDR 223.9 trillion and net loans of IDR 13 trillion.

"We see, this result is also inseparable from the extraordinary growth in the state revenue sector", he said.

The Minister of Finance added that the 2022 State Budget at the end of July still posted a surplus of IDR 106 trillion.

This value was obtained from higher state revenues of IDR 1,551 trillion compared to expenditures of IDR 1,444,8 trillion.

According to VOI records, the position of government debt at the end of June was at IDR 7,123.62 trillion, equivalent to 39.56 percent of gross domestic product (GDP).

This number is higher than the May 2022 book which amounted to IDR 7,002.24 trillion or 38.88 percent of GDP.

It was stated that the increase in debt occurred due to a surge in budget needs in tackling the impact of the pandemic in recent years.