Sri Mulyani Reveals The 2024 State Budget Deficit Widening In June 2024 Reaches IDR 77.3 Trillion

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the 2024 State Revenue and Expenditure Budget (APBN) experienced a deficit of IDR 77.3 trillion in the first semester of 2024.

Finance Minister Sri Mulyani said the budget deficit as of June 2024 was IDR 77.3 trillion, equivalent to 0.34 percent of Gross Domestic Product (GDP).

However, it is different when compared to the State Budget as of June 2023 which experienced a surplus of IDR 152.3 trillion or 0.71 percent of GDP.

"The total posture of the first semester of the 2024 State Budget is a deficit of IDR 77.3 trillion," he said at the Working Meeting of the DPR RI Budget Agency, Monday, July 8.

According to Sri Mulyani, the state budget deficit as of June 2024 was due to declining state revenues, while state spending experienced an increase.

Sri Mulyani explained that the realization of state revenue as of June 2024 reached Rp1,320.7 trillion, down 6.2 percent (yoy), compared to the same period last year.

This realization is equivalent to 47.1 percent of the 2024 State Budget target of IDR 2,802.3 trillion.

Tax revenues were recorded at only IDR 1,028 trillion, down 7 percent compared to the same period last year.

Meanwhile, PNBP reached IDR 288.4 trillion, down 4.5 percent (yoy).

The decline in state revenue was mainly due to the decline in commodity prices, particularly coal and CPO, which affected the profitability condition of the corporate sector, which resulted in the acceptance of corporate income tax which contracted 35.5 percent (yoy).

The realization of state spending reached Rp1,398 trillion, an increase of 11.3 percent (yoy) compared to the same period last year.

This realization is equivalent to 42 percent of the 2024 State Budget target of IDR 3,325.1 trillion.

The increase in state spending is mainly related to the role of the State Budget as a shock absorber to anticipate global turmoil, protect people's purchasing power, and continue to support various priorities for the national development agenda.

Sri Mulyani said that the primary balance still recorded a surplus of IDR 162.7 trillion, down 55.8 percent compared to last year's IDR 368.2 trillion.

Meanwhile, budget financing reached Rp168 trillion or 32.1 percent of the 2024 State Budget with various efforts to maintain prudent and efficient financing.

Although the prime balance surplus fell and the state budget deficit widened, Sri Mulyani said, this was still in accordance with the government's calculation for the 2024 State Budget which was prepared to experience a deficit of IDR 522.8 trillion or equivalent to 2.29 percent of GDP.

"So the realization of the deficit of IDR 73.3 trillion is still in the range in our APBN," he said.