Sri Mulyani Reveals That The State Budget Experiences A Deficit Of IDR 21.8 Trillion In May 2024

Minister of Finance Sri Mulyani (photo; Antara)

Minister of Finance Sri Mulyani Indrawati conveyed the State Revenue and Expenditure Budget (APBN) until the end of May 2024 a deficit of IDR 21.8 trillion or equivalent to 0.10 percent of Gross Domestic Product (GDP).

Sri Mulyani said that the current deficit in May 2024 is still on track because the 2024 State Budget is designed for a deficit of 2.29 percent and the current state budget performance is inseparable from global uncertainty.

"Overall balance, we have experienced a deficit of IDR 21.8 trillion or 0.1 percent. The 2024 APBN is a state budget designed by the government and approved by the DPR to be implemented in 2024, where the 2024 deficit is 2.29 percent of GDP," he said at a press conference on the latest economic fundamental conditions and the 2025 State Budget plan, Monday, June 24.

Therefore, Sri Mulyani said that if there was a deficit of 0.10 percent, it would still be on track because the 2024 State Budget was designed for a deficit of 2.29 percent.

"So now we are still 0.1 percent relatively on track with this year's total overall balance which according to the 2024 State Budget Law is designed with a deficit of 2.29 percent," he said.

Sri Mulyani explained that until May 2024, new state revenues collected Rp1,123.5 trillion, down 7.1 percent compared to the same period last year. Meanwhile, tax revenues were recorded at Rp896.5 trillion or a contraction of 8.4 percent (yoy).

"Kita lihat pendapatan negara sampai akhir Mei 2024 memang mengalami tekanan yaitu growth-nya negatif 7,1 persen, terdiri dari penerimaan pajak yang mengalami kontraksi 8,4 persen, PNBP kita juga mengalami penurunan 3,3 persen, kemudian kepabeanan dan excise mengalami kontraksi 7,8 persen," ujarnya.

Sri Mulyani said that the decline in state revenue was due to the contraction in commodity prices so that tax revenues were reduced. Therefore, his party continues to take various adjustment steps.

"We continue to take joint steps with ministries/agencies and local governments in terms of transfer so that we continue to maintain development priorities and economic growth, but do not make the APBN a source of vulnerableities," he said.

Sri Mulyani said that when state revenue decreased, state spending until the end of May 2024 had reached Rp1,145.3 trillion. The state expenditure consists of K/L spending, non-K/L spending and transfers to the regions.

"In May, our primary balance is still in a surplus of Rp. 184.2 trillion. This is still a very high surplus from the primary balance," said Sri Mulyani.