Government Spending Reached Rp. 3,090.8 Trillion Throughout 2022

Economic Sectors

Government spending realization in 2022 recorded an increase of 10.9% compared to the realization in 2021. Throughout 2022, the government has disbursed Rp. 3,090.8 trillion. The spending focuses on protecting the national economy.

The government considers this spending to be in line with the State Budget’s policy strategy, which acts as a shock absorber.

Minister of Finance Sri Mulyani Indrawati revealed that the budget was intended to protect the economy and society against the impact of global uncertainty risks. Meanwhile, the absorption of state spending reached 99.5% of Presidential Decree 98/2022.

Sri Mulyani said this amount consisted of K/L expenditure realization of IDR 1,079.3 trillion or 114.1% of Presidential Decree 98/2022, which was influenced by, among other things, an increase in K/L spending ceilings to support the Covid-19 Handling and Recovery Program. National Economy (PC PEN) in the field of health and social protection.

She explained that additional spending in the health sector was mainly for handling Covid-19 patients, payment of incentives for health workers, and procurement of medicines/vaccines for handling Covid-19.

Additional spending in the field of social protection is mainly to maintain purchasing power and ease the burden on public spending, through Cooking Oil Direct Cash Assistance (BLT), Fuel BLT, and Wage Subsidy Assistance, as well as for natural disaster management in several regions.

Sri Mulyani also noted that the realization of non-K/L spending reached IDR 1,195.2 trillion or 88.2% of Presidential Decree 98/2022, an increase of 47.6% when compared to the realization in 2021.

This amount, among others, consists of debt interest payments which reached IDR 386.3 trillion or 95.2% of Presidential Decree 98/2022, and energy subsidies and compensation of IDR 551.2 trillion or 109.7% of Presidential Decree 98/2022.

This figure has increased by 192.7% from the realization in 2021, mainly affected by higher ICP prices and increased fuel and electricity consumption.

Then, the realization of the 2022 Transfer to Regions and Village Funds (TKD) budget reached IDR 816.2 trillion or 101.4% of Presidential Decree 98/2022, an increase of 3.9% compared to the realization in 2021.

Sri Mulyani emphasized that the hard work of the State Budget for the last 3 years has succeeded in safeguarding society and the economy and has proven to be resilient in facing various shocks and threats of uncertainty.