Minister of Finance Sri Mulyani Indrawati revealed that the realization of the State Revenue and Expenditure Budget (APBN) until May 2025 scored a deficit of IDR 21.0 trillion or equivalent to 0.09 percent of gross domestic product (GDP) and was still in accordance with the 2025 State Revenue and Expenditure Budget (APBN) plan which was IDR 616.2 trillion.
Bright Institute economist Awalil Rizky assessed that the deficit was actually due to a decrease in spending which could offset the decline in revenue as reflected in State Expenditures and State Revenue which contracted by 11.26 percent and 11.41 percent, respectively.
"The decline in spending in such income conditions can be said to be quite good. However, it is claimed to be an expansion and shock absorber to appear excessive. The decrease in spending means that it is unable to significantly encourage economic growth. It is indicated that the decline in economic growth rate in the first quarter of 2025," he said in his statement, Thursday, June 19.
He added that in the calculation of economic growth in the first quarter of 2025, Government consumption contributed minus 0.08 percentage points to growth of 4.87 percent.
Then its annual growth (yoy) contracted 1.38 percent and became the only component of expenditure on the contractioning Gross Domestic Product.
Awalil emphasized that although government consumption does not only come from the APBN, but also from other state institutions and the APBD, the portion of the APBN remains the largest.
The capital expenditure, which is said to have increased in May compared to April 2025, according to him, was not significant enough because cumulatively in the first five months of 2025, capital expenditure was still recorded to have contracted compared to the same period in 2024.
He also highlighted that there was no official budget efficiency policy announced by the government, because the decline in spending so far was due to the blocking of budgets for various spending plans, not from planned new reallocations.
According to him, this uncertainty has an impact on economic actors who are partners with the government, and overshadow the realization of spending until the end of May 2025, so that claims that government spending is expansionary, measurable, and directed are considered too excessive.
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