The spending schedule is different. That's what makes (spending) in the second quarter smaller.
Jakarta (ANTARA) - Head of the Finance Ministry's Fiscal Policy Agency, Febrio Kacaribu, has assured that the government's spending has remained in line with the state budget target despite a slowdown in the second quarter of 2024.

"The whole-year (spending) is based on the planned expenditure in the state budget," he said here on Tuesday.

Government spending in the second quarter of 2024 swelled 1.42 percent year-on-year (yoy), contributing 7.31 percent to the gross domestic product (GDP).

The figure was lower compared to the first quarter of this year, when it was recorded at 19.9 percent (yoy).

According to Kacaribu, the slowdown was due to the shift in several mechanisms that were different from 2023.

For example, spending toward religious holiday allowance (THR) and the 13th salary of civil servants took place in the second quarter last year, but this year, it was carried out in the first quarter.

"The spending schedule is different. That's what makes (spending) in the second quarter smaller," he said.

For this reason, he said that the government will not take any aggressive steps to boost spending in the third quarter.

"Based on the provisional report, our outlook is around Rp87 trillion above the state budget. Hence, there is no need to boost anything. We have spent well, and some posts will even spend more above the state budget target," he informed.

The central government's spending was recorded at Rp997.9 trillion, or up 11.9 percent year-on-year, in the first half of 2024.

The figure included spending of Rp762.1 trillion on programs that directly benefit the community. For instance, the staple food card, energy subsidies, agricultural equipment, and food price stabilization programs.

Moreover, social assistance programs and election implementation also pushed up government spending in the first half.

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Translator: Imamatul S, Kenzu
Editor: Azis Kurmala
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