Government Spending in APBN Increases in the Last Five Years


The policy of refocusing and reallocating the budget in the 2020 APBN as a response to fiscal policy in dealing with extraordinary conditions of the Covid-19 pandemic has caused government spending in the State Revenue and Expenditure Budget (APBN) in the last five years experiences a significant increase.

Starting from the spending of IDR 2,007.4 trillion in 2017 to IDR 2,786.37 trillion in 2021 with an average growth of 8.59 percent.

The Director-General of Treasury of the Ministry of Finance Hadiyanto said that the high spending allocation was due to a very significant increase in central government spending in 2020 which reached 22.50 percent compared to 2019.

He added that within five years, the realization of central government spending was always able to meet the target at the end of the year by 90 percent, with an average absorption for 5 years of 96.73 percent.

However, Hadiyanto acknowledged that there were challenges in the execution pattern of government spending so that the accumulation of realization at the end of the year still occurred, especially in goods and capital expenditures.

“The average absorption of goods expenditures in the fourth quarter of 2021 reached 38.1 percent, while capital expenditures were even higher at 46.5 percent,” he said in the First Day 2022 National Coordination Meeting for Budget Implementation, Tuesday (12/4/2022).

On the other hand, transfer spending to regions and village funds (TKDD) showed an average growth of 1.56 percent from 2017 of 741.99 trillion to 785.70 trillion in 2021.

The TKDD policy, said Hadiyanto, is directed at helping accelerate economic recovery at the regional level in line with policies with central government spending during the pandemic.

In 2022, state expenditures are allocated at Rp. 2,714.2 trillion, consisting of central government expenditures of Rp. 1,944.6 trillion and TKDD of Rp. 769.6 trillion.

Hadiyanto said that this year is a golden moment for national economic recovery. Therefore, he hopes that the implementation of spending on the allocation of funds should really be used to achieve national strategic programs, which include aspects of health, community protection, strengthening MSMEs, and economic recovery.