State Budget Deficit Widens to IDR 237.7 Trillion, Sri Mulyani: Far from the Plan of IDR 840.2 Trillion

Minister of Finance Sri Mulyani (Photo: Capture the screen of the Ministry of Finance's Youtube)

JAKARTA - The Minister of Finance, Sri Mulyani, stated that the state budget deficit until December 14 2022 was IDR 237.7 trillion.

This figure is obtained from lower state revenue of IDR 2,479.9 trillion compared to state spending of IDR 2,717.6 trillion.

However, the state treasurer said that the realization of the budget deficit ahead of closing this year was quite good compared to the initial estimate for the 2022 State Budget according to Presidential Decree 98/2022.

"This deficit is much smaller than the indications or plans for 2022, which is IDR 840.2 trillion", she said when holding a press conference on Our State Budget on Tuesday, December 20.

For information, the incision up to mid-December is the second time a deficit has occurred this year. Previously, the first deficit only occurred at IDR 169.5 trillion at the end of last October.

Furthermore, the Minister of Finance explained that the realization that occurred was also more sloping than the December 14, 2021 book of IDR 617.4 trillion.

"As a percentage of gross domestic product (GDP), the current deficit is only 1.22 percent. This is much better than the assumption of 4.5 percent of GDP for the entire 2022 period", she said.

The state treasurer added that this good score caused the realization of financing to decline sharply, namely by 28.5 percent to IDR 469.8 trillion from the previous IDR 656.8 trillion on 14 December 2021.

"The realization of the deficit is running on track in line with the acceleration of state spending. In general, the well-maintained state budget performance has reduced the need for debt financing", said Minister of Finance, Sri Mulyani.

It should be noted that from the beginning the State Revenue and Expenditure Budget was prepared using a deficit assumption. This policy is an agreement between the government and the DPR as stipulated in the State Budget Law and has been in place for several periods.

The budget deficit strategy is meant to pursue higher growth with the risk that the budget shortfall is patched up through (debt) financing.