Investor Daily, Jakarta – Government spending is projected to reach Rp 3,061 trillion ($197 billion) for the fiscal year 2023 to anticipate a continued slowdown of the global economy and looming food and energy crises amid geopolitical tension, Finance Minister Sri Mulyani Indrawati said on Thursday.
The figures will cover central government spending at Rp 2,246.5 trillion and transfers to regional governments totaling Rp 814.7 trillion.
"Spending on education and healthcare will continue to take the biggest share of the budget to develop superior and productive human resources, amounting to Rp 612.2 trillion," Sri Mulyani said at the State Palace in Central Jakarta.
A majority of the amount will go to regional governments to finance their education and health system.
Social insurance, which the minister described as a shock absorber, will reach Rp 476 trillion, including a huge budget for social assistance and subsidies of Rp 454.7 trillion.
Sri Mulyani said the government will allocate Rp 104.2 trillion for the food security program and another Rp 341.3 trillion for energy subsidies.
Meanwhile, spending on "strategic infrastructure projects" is set at Rp 392.1 trillion. State-owned construction companies will receive significant funding of Rp 86 trillion, she added.
Defense spending is projected to reach Rp 316.9 trillion, the minister said.