Ministry of Finance Records Rp85.41 Trillion in State Expenditure in East Java until August
The Head of the Regional Office of the Directorate General of Treasury of the Ministry of Finance for East Java, Saiful Islam, recorded that the realisation of state expenditure up to 31 August reached Rp85.41 trillion, contracting by 7.66 per cent (yoy) from Rp92.49 trillion during the same period last year.
“The contraction is due to the fact that the Regional Transfer (TKD) allocation is lower this year, which has impacted expenditure,” he stated during a media briefing in Surabaya, East Java, on Wednesday.
State expenditure realisation was driven by central government spending, or Ministry/Agency (K/L) spending, amounting to Rp36.03 trillion, and TKD amounting to Rp4pend49.37 trillion.
Ministry/Agency spending grew significantly by 24.08 per cent (yoy) and represents 65.59 per cent of the Rp54.94 trillion ceiling, reflecting an acceleration in expenditure execution to support priority programmes and stimulate economic activity in East Java.
Saiful noted that the acceleration in expenditure realisation was driven by government policies to expedite budget execution at the start of the fiscal year, including for national priority programmes such as ‘Sekolah Rakyat’ (People’s School).
Expenditure is also directed towards infrastructure development to support connectivity and food security. This acceleration is expected to maintain public purchasing power and ensure that state funds circulate optimally within the real sector.
In detail, Ministry/Agency spending consists of personnel expenditure amounting to Rp21.24 trillion, or 73.24 per cent of the ceiling, driven by the appointment of new Government Employees with Work Agreements (PPPK) in line with the strengthening of civil servant formations, particularly in the education and health sectors.
Furthermore, goods expenditure amounted to Rp8.28 trillion, or 54.43 per cent of the ceiling, which includes the operational costs of Public Service Agencies (BLU), office operations, as well as the maintenance of equipment, machinery, and buildings.
Ministry/Agency spending also includes capital expenditure of Rp6.51 trillion, or 60.71 per cent of the ceiling, which supports connectivity and food security through the construction of networks and irrigation, as well as supporting government priority programmes including ‘Sekolah Rakyat’.
Meanwhile, the realised TKD of Rp49.37 trillion, or 75.73 per cent of the total ceiling, has had a direct impact on educational services, including 10,775,906 students receiving BOS (School Operational Assistance), 2,233,041 early childhood education (PAUD) students receiving BOP (Operational Assistance), 178,552 students participating in equality programmes, and 1,510,203 teachers receiving allowances.