The State Budget Starts A Deficit Of IDR 700 Billion In October 2023

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

Minister of Finance Sri Mulyani Indrawati conveyed that the State Revenue and Expenditure Budget (APBN) recorded a deficit in October 2023 of IDR 700 billion or 0.003 percent of gross domestic product (GDP) after 9 months of experiencing a surplus.

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

The realization of state revenues consisting of taxes, customs and excise, and non-tax state revenues (PNBP) amounted to Rp2,240.10 trillion or reached 90.9 percent of the target or grew 2.79 percent compared to the same period last year.

Meanwhile, the realization of state spending reached IDR 2,240.8 trillion or 73.2 percent of the ceiling.

This figure contracted 4.68 percent compared to the same period last year.

"The APBN post has started a deficit of IDR 700 billion or 0.003 percent of GDP," Sri Mulyani said in a press conference, Friday (24/11).

Sri Mulyani explained that the nominal number of state revenues and expenditures is almost the same, but this state expenditure is only 73.2 percent of the total budget ceiling in the APBN Law.

This means that state spending from last year fell 4.7 percent.

Although the State Budget in October 2023 has recorded a deficit, in terms of primary balance, it still has a surplus of IDR 365.4 trillion.

"As of October 2023, the performance of the State Budget is on track. In line with the increasingly large spending, the State Budget has begun to record a deficit," he said.

Previously, Sri Mulyani Indrawati said that her party would accelerate spending in the last 2 months of 2023.

In line with the acceleration of expenditure, the state budget is starting to experience a deficit.

In addition, he is optimistic that the 2023 State Budget will record a deficit below 2.3 percent of GDP. This year's APBN deficit outlook is predicted to reach IDR 486.4 trillion or 2.28 percent of GDP, or lower than the 2022 State Budget which is 2.35 percent or IDR 460.4 trillion.