The APBN Deficit Is Widening, And Sri Mulyani Has Proposed The Use Of SAL To The DPR

The Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, has submitted a request to the House of Representatives (DPR RI) for the utilization of a budget surplus of Rp85.6 trillion to address the widening deficit of the State Budget (APBN) for 2025, which is projected to exceed the initial target.

During a working meeting with the Budget Agency (Banggar) of the DPR RI on Tuesday, the Minister of Finance indicated that the projected outlook for the APBN deficit by the end of 2025 is expected to reach Rp662 trillion, equivalent to 2.78 percent of the Gross Domestic Product (GDP).

This figure is higher than the deficit target set in the 2025 APBN, which stands at Rp616.2 trillion or 2.53 percent of GDP.

"The total deficit is Rp662 trillion or 2.78 percent of GDP. This is somewhat wider compared to the initial APBN. We will seek the approval of the DPR to utilize the remaining budget surplus of Rp85.6 trillion so that the increase in the deficit does not have to be entirely financed through the issuance of bonds," she stated.

The widening of the deficit, as stated by Sri Mulyani, is attributed to the potential failure to meet the state revenue targets.

The total state revenue is estimated to reach only Rp2,865.5 trillion, which is approximately 95.4 percent of the target set in the budget ceiling of Rp3,005.1 trillion.

To avoid complete reliance on financing through debt issuance, the Minister of Finance plans to utilize a portion of the State Treasury Account (SAL) for the 2024 fiscal year, which is recorded at Rp457.5 trillion.

With the projected widening deficit, the use of part of the SAL becomes a strategic financing alternative to alleviate the burden of new debt. The SAL will be employed to support deficit financing, fulfill government obligations, and prioritize expenditures.

"The utilization of SAL will assist in maintaining fiscal balance and alleviating pressure on financing through government securities," he added.

Furthermore, state expenditure is projected to reach Rp3,527.5 trillion by the end of 2025, which represents 97.4 percent of the ceiling established in the 2025 State Budget.

Tag: APBN Sri Mulyani Indrawati