Arnoldus Kristianus, Jakarta – The Finance Ministry reported a budget deficit of Rp 77.3 trillion, or 0.34 percent of GDP, in the first half of 2024. This came alongside an 11.3 percent increase in government spending and a 6.2 percent decline in state revenue.

Finance Minister Sri Mulyani Indrawati said the deficit is within the government's target range, with the 2024 state budget projecting a year-end deficit of Rp 522.8 trillion.

"The realized deficit is 0.34 percent of GDP, while the 2024 budget targets a 2.29 percent deficit of GDP," Sri Mulyani said during a meeting with the House of Represntatives' Budget Committee on Monday.

State revenue for the first half of 2024 was Rp 1,320.7 trillion, or 47.1 percent of the 2024 target of Rp 2,802.3 trillion, a 6.2 percent decrease from the same period in 2023. This includes Rp 1,028 trillion from tax revenue and Rp 288.4 trillion from non-tax revenue.

Tax revenue, at Rp 893.8 trillion, showed a 7.9 percent decline from Rp 970.2 trillion in the first half of 2023. Customs and excise revenue saw a slight contraction from Rp 135.4 trillion last year. Non-tax revenue amounted to Rp 288.4 trillion, down 4.5 percent from Rp 302.4 trillion in the first half of 2023.

"All components of tax and non-tax revenue have contracted, leading to a total state revenue of Rp 1,320.7 trillion, a 6.2 percent decrease from the same period last year," Sri Mulyani said.

Government spending reached Rp 1,398.9 trillion, or 42 percent of the total state budget of Rp 3,325.1 trillion, reflecting an 11.3 percent annual increase. This includes Rp 997.9 trillion for central government spending and Rp 400.1 trillion for regional transfers.

"Central government spending of Rp 997.9 trillion is 11.9 percent higher than last year's Rp 891.6 trillion," Sri Mulyani added.

Source: https://jakartaglobe.id/business/indonesia-maintains-budget-deficit-target-amid-tax-revenue-di