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Bisnis Indonesia - APBN 2022 target realisasi belanja 90%
25 November 2022
By: Tegar Arief
Even though realisation until October 2022 was still limited, the Finance Ministry ensured that expenditure realisation would reach 90%-93% at the end of the year.
According to Budgeting Director General of the Finance Ministry Isa Rachmartawarta, the government unintentionally saved expenditure this year.
According to him, the limited expenditure realisation is caused by the consideration to increase expenditure discipline and quality by ministries and institutions.
“We have no policy to hold back expenditure,” Isa said on Thursday (24/11).
The Finance Ministry recorded that state expenditure realisation until October 2022 reached Rp2,351.1 trillion, while total expenditure allocation this year reaches Rp3,106.4 trillion.
The realisation amount is equal to 75% of the budget ceiling prepared by the government, which means that state expenditure must reach Rp755.3 trillion in the last two months of this year.
The expenditure performance of the state is contradictive to the government’s mission to reduce inflation.
Meanwhile, fiscal space is quite spacious in accordance with the high state revenue.
Isa added that capital expenditure slowed down after the government had increased fuel prices on 3 September.
The fuel policy impacted the expenditure progress of several institutions, especially the Public Works and Housing (PUPR) Ministry and Transportation Ministry.
“However, various steps have been taken. We believe that, until the end of the year, expenditure will surpass 90%, reaching 93%,” he stated.
Meanwhile, Centre of Reform on Economics (Core) Indonesia Executive Director Mohammad Faisal reckoned that the expenditure pipe being clogged would affect the national economic productivity.
Social expenditure is related to the effectiveness of inflation handling that is currently the focus of the government and capital expenditure is related to investment. “The impact will be felt even though the expenditure is required,” he stated.