Sri Mulyani Plans State Expenditure Of IDR2,993 Trillion Next Year, Local Government Gets A Third

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the allocation of the state budget in the 2023 RAPBN was Rp. 2,795.9 trillion to Rp. 2,993.4 trillion.

This amount is higher when compared to the 2021 State Budget Act which amounted to IDR 2,714.2 trillion.

"The value of spending in the 2023 RAPBN, about a third of which will be distributed to the regions," he said while attending a Working Meeting with the DPR Banggar at the Senayan Parliament Complex, Jakarta, Tuesday, May 31.

In detail, the Minister of Finance explained that as much as Rp. 1,995.7 trillion to Rp. 2,161.1 trillion will be used for central government spending.

Meanwhile, Rp800.2 trillion to Rp832.4 trillion will be channeled to local governments in the form of Transfers to Regions and Village Funds (TKDD).

Meanwhile, in terms of revenue, the 2023 RAPBN is known to aim for a revenue target of IDR 2,266.7 trillion to IDR 2,398.8 trillion.

This figure brings the budget deficit back to a level below 3 percent of gross domestic product (GDP) as mandated in Law No. 2 of 2022.

"Fiscal policy in 2023 remains measurable expansion with a deficit of around 2.61 percent to 2.90 percent of GDP and is directed at increasing productivity and inclusive and sustainable economic transformation," said Minister of Finance Sri Mulyani.