pagu

Pagu, in the context of Indonesian public finance, is the budget ceiling assigned to a government unit for a fiscal year. It represents the maximum amount of spending that may be charged to the state budget for that unit, program, or activity. Pagu applies at national and subnational levels, including ministries and agencies within the APBN and provincial or municipal units within the APBD. The ceiling is determined through the budgeting process and serves to translate macro fiscal targets into executable resources, providing a framework for planning, control, and accountability.

Practically, Pagu is subdivided into program and activity ceilings, and forms the basis for preparing the RKA-K/L and the DIPA. It is often issued in two stages: a Pagu Indikatif (indicative ceiling) early in the planning phase, followed by a Pagu Definitif (final ceiling) in the budget formulation and approval stages. Changes to Pagu may occur through budget revisions or priority shifts, but remain constrained by overall fiscal policy.

A unit must operate within its Pagu, and actual expenditures are tracked against it. If revisions are needed, they typically require formal approval and alignment with financial regulations. Pagu thus functions as a controlling tool to ensure orderly allocation and use of public funds, and to support implementation of government programs.

See also: APBN, APBD, RKA-K/L, DIPA, Pagu Indikatif, Pagu Definitif.