Outlook For The 2025 State Budget Deficit To Widen To IDR 662 Trillion, Sri Mulyani Submits The Use Of SAL

Minister of Finance Sri Mulyani (Photo; Doc. Antara)

Minister of Finance Sri Mulyani Indrawati said that the 2025 State Revenue and Expenditure Budget deficit (APBN) is expected to exceed the previously set target.

Sri Mulyani estimates that the outlook for the 2025 State Budget deficit will reach IDR 662 trillion or equivalent to 2.78 percent of gross domestic product (GDP) or greater when compared to the deficit target in the 2025 State Budget which is IDR 616.2 trillion or 2.53 percent of GDP.

"The total deficit is at IDR 662 trillion to 2.78 percent of GDP. From a wider number compared to the initial APBN," he said in a meeting with the DPR's Budget Agency, Tuesday, July 1.

Sri Mulyani said that the widening of the budget deficit was triggered by the potential for the failure to achieve the state revenue target where state revenue in 2025 is estimated to reach only IDR 2,865.5 trillion, or 95.8 percent of the target of IDR 3,005.1 trillion.

He explained that the state revenue came from tax revenues which were estimated to only reach Rp2,076.9 trillion, or 94.9 percent of the target of Rp2,189.3 trillion.

Meanwhile, revenues from customs and excise are expected to exceed the target, reaching IDR 310.4 trillion or 102.9 percent of the target of IDR 301.6 trillion.

Meanwhile, non-tax state revenues (PNBP) are projected to only reach Rp477.2 trillion, or 92.9 percent of the target of Rp513.6 trillion and revenue from grants is estimated to reach Rp1 trillion, or 170.7 percent of the target of Rp600 billion.

On the other hand, he said that state spending is estimated to only reach Rp3,527.5 trillion, or 97.4 percent of the total budget ceiling of Rp3,621.3 trillion.

Meanwhile, the state expenditure consists of K/L expenditures which are expected to exceed the target, reaching Rp1,275.6 trillion or 109.9 percent of the target of Rp1,160.1 trillion.

Then, non-K/L expenditure only reached Rp1,387.8 trillion, or 90.0 percent of the target of Rp1,541.4 trillion, and transfers to the regions only reached Rp864.1 trillion, or 939 percent of the target of Rp919.9 trillion.

According to him, with the projected widening of the deficit to 2.78 percent of GDP, the government will apply for DPR approval to use the Remaining Budget (SAL) of IDR 85.6 trillion from the total 2024 SALes which reached IDR 457.5 trillion.

"We will ask the DPR for approval to use SAL Rp85.6 trillion, so that the increase in the deficit does not have to be financed all by issuing debt securities," he said.