Gov’t to Maintain 2023 State Budget Deficit Below 3 Percent

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 1 Desember 2022
Category: News
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Minister of Finance Sri Mulyani, Minister of Health Budi Gunadi Sadikin, and Minister of Education, Culture, Research and Technology Nadiem Makarim engage in a conversation before a press statement, at the Presidential Office, Jakarta, Thursday (12/01). (Photo by: PR of Cabinet Secretariat/Rahmat)

Minister of Finance Sri Mulyani Indrawati ensured that the 2023 State Budget (APBN) deficit can still be pushed below 3 percent, in accordance with provisions of laws and regulations.

“State Budget deficit for 2023 is getting smaller, amounting Rp598.2 [trillion] or 2.84 percent. This is in line with the implementation of Perpu (Government Regulation in Lieu of Law) Number 1 of 2020 and Law Number 2 of 2020 regarding fiscal consolidation that set deficit for 2023 below 3 percent against GDP (Gross Domestic Product),” Sri said in a press statement, at the Presidential Office, Jakarta, Thursday (12/01).

She went on to say that the target of state revenue for 2023 is projected to reach Rp2,463 trillion consisting of Rp2,021 trillion from taxes, Rp441.4 trillion from non-tax revenue, and Rp0.4 trillion from grants. In addition, state expenditure for 2023 is estimated at Rp3,061.2 trillion consisting of expenditure of the Central Government amounting Rp2,246.5 trillion, and transfer to regions amounting Rp814.7 trillion.

“As previously ordered by the President, state expenditure will be focused on development of human resources’ quality,” she said adding that the Government also focuses on completing National Strategic Projects (PSN), infrastructure projects to support economic transformation, and development of green economy and Nusantara Capital City (IKN).

The Government also continues to expand, strengthen, and reform social safety net by improving and updating database of poverty and vulnerable people through Economic and Social Registry Survey.

“Services to the public are also improved through bureaucratic reforms and ministries/institutions reforms,” she added.

The Minister explained that in the 2023 State Budget, Rp612.2 trillion will be allocated for education sector, consisting of Rp237.1 trillion for the Central Government, Rp305.6 trillion for transfer to regions, and Rp69.5 trillion for financing.

“In health sector, in addition to the budget that was mentioned earlier by Minister of Health, a budget of Rp178.7 trillion has been allocated, consisting of Rp118.7 trillion for the Central Government and Rp60 trillion for transfer to regions,” she stated.

In addition, Rp476 trillion is allocated to social assistance programs, consisting of Rp454.7 trillion for the Central Government, Rp17 trillion for transfer to regions, and Rp4.3 trillion for financing.

In order to support food security, Minister of Finance has allocated Rp104.2 trillion, consisting of Rp81.7 trillion for the Central Government, Rp22.5 trillion for transfer to regions. In energy sector, Rp341.3 trillion is allocated of which Rp339.6 trillion is allocated for compensation and subsidy while Rp1.7 trillion is allocated for other expenditures in energy sector.

“[budget for] infrastructure for next year is allocated at Rp392.1 trillion consisting of Rp211.1 trillion for the Central Government, Rp95 trillion for transfer to regions, and Rp86 trillion for financing. Lastly, Rp316.9 trillion of budget is allocated to security and defense affairs, the TNI (Defense Forces), the Polri (National Police), and for general elections,” she concluded. (FID/UN) (RAS/MMB)

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