Until The End Of 2024, Sri Mulyani Projected A State Budget Deficit To Reach 2.7 Percent Of GDP

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati projects that the State Revenue and Expenditure Budget (APBN) deficit for Fiscal Year 2024 will reach 2.7 percent of Gross Domestic Product (GDP) or nominally IDR 609.7 trillion. This figure is higher than the target set by the government in the 2024 State Budget Law, which is 2.29 percent of GDP or equivalent to IDR 522.8 trillion.

"We project that the 2024 State Budget will close its deficit from primary balance to Rp110.8 trillion and the total deficit will reach Rp609.7 trillion. This means that there is an increase in the deficit deficit by 2.29 percent to 2.7 percent of GDP," he said at the Working Meeting of the DPR RI Budget Agency, Monday, July 8.

Sri Mulyani estimates that state revenues until the end of 2024 will reach IDR 2,802.5 trillion or grow 0.7 percent (yoy) driven by maintained and positive economic activity, implementation of tax reform, increasing BUMN dividends and improving ministry/institutional services (K/L).

Meanwhile, state spending until the end of 2024 is estimated to reach IDR 3,412.2 trillion or 102.6 percent of the 2024 State Budget ceiling or grew 9.3 percent.

Sri Mulyani conveyed this in line with the role of the State Budget as a shock absorber to maintain growth momentum, protect purchasing power and support the achievement of national development priority targets.

In addition, Sri Mulyani said that to finance the swelling of the 2024 State Budget deficit of Rp. 609.7 trillion will use it through the Remaining Budget (SAL) of Rp. 100 trillion and the issuance of state securities (SBN) remains lower by Rp. 214.6 trillion.

"Although the deficit has increased, the issuance of SBN has not increased, instead it is lower than IDR 214.6 trillion," he said.

For information, the 2024 State Revenue and Expenditure Budget (APBN) recorded a deficit of IDR 77.3 trillion in the first semester of 2024 or 0.34 percent of Gross Domestic Product (GDP).