JAKARTA - Minister of Finance (Menkeu) Sri Mulyani, who represents the government, proposed an increase in the 2022 state budget by Rp392.3 trillion to Rp3,106.4 trillion.
This amount is higher when compared to the provisions in the 2022 State Budget Law, which is planned for spending of IDR 2,714.2 trillion.
In his presentation, the Minister of Finance revealed that most of the additional funds allocated would be used to cover subsidies and energy compensation posts this year.
"The increase in oil prices and no price adjustment policy has caused the burden of subsidies and compensation to rise significantly," he said at the Parliament Complex on Thursday, May 19.
In detail, the Minister of Finance explained that in the 2022 APBN Law the allocation of energy subsidies (fuel and electricity) is Rp. 134 trillion. This amount is projected to increase to Rp208.9 trillion.
Then for the compensation side, the 2022 State Budget Law mandates a value of IDR 18.5 trillion. It is believed that this amount will increase to Rp. 213.2 trillion.
"The government needs to immediately adjust the ceiling for subsidies and compensation, so that the finances of business entities (Pertamina and PLN) are healthy and maintain national energy availability," said Minister of Finance Sri Mulyani.
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