Sri Mulyani Will Return To Block The Ministry's Budget Of IDR 50.14 Trillion In 2024

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

JAKARTA - The Ministry of Finance will again conduct automatic adjustments or block a number of expenditure budgets in ministries/agencies that are not priority to priority of IDR 50.14 trillion in the budget ceiling for the 2024 fiscal year.

This policy is contained in the Letter of the Minister of Finance Number S-182/MK.02/2023 concerning automatic adjustments for ministry/institution spending for the 2024 fiscal year.

The automotive policy for the administration of ministry/institution spending for the 2024 fiscal year is set at IDR 50.14 trillion.

Head of the Communication and Information Services Bureau Deni Surjantoro said that the automatic adjustment policy is one of the methods to respond to global dynamics and has proven effective in maintaining the resilience of the 2022 and 2023 State Budgets.

"According to the President's direction during the 2024 DIPA submission, currently, global geopolitical conditions that are dynamic have the potential to affect the world economy, so it is necessary to anticipate potentials or possibilities that can occur in 2024," he explained in his official statement Friday, February 2, 2024.

Deni explained that basically the budget affected by automatic adjustment will still remain in the Ministry of Agriculture and the Institution.

The policy is aimed at all ministries or institutions.

Meanwhile, the temporary reserve expenditure of ministries or institutions is set at 5 percent of the ministry or institution expenditure ceiling.

For information, the automatic adjustment policy was carried out in 2022 and 2023. Where in 2023 the government implemented an automatic adjustment policy for Ministries/Institutions (ministerial or institutions) for the 2023 budget year of IDR 50.23 trillion.

Previously, Minister of Finance Sri Mulyani conveyed that the automatic adjustment policy or backup spending was an anticipatory strategy towards global economic uncertainty and the current geopolitical conditions.

Meanwhile, this policy asks all ministries or institutions to block part of the budget that has not been prioritized at the beginning of the year.

Thus, ministries or institutions are directed to prioritize really important spending.

Sri Mulyani said that the 5 percent budget reserve did not affect performance and could still achieve development targets from each ministry or institution.

"Usually shopping is also not up to 100 percent. The biggest thing is usually 98 percent, on average they are 94 percent to 95 percent. So actually, I actually say that I often use 5 percent, ma'am, sir. You can do all the programs," he said at the 2023 Economic Outlook event, Tuesday, February 28.