Finance Minister: 2026 State Budget Continues to Safeguard Growth While Keeping Deficit at 2.85% of GDP
The Government is maintaining the soundness of the State Budget to support economic stability and national priority programs amid persistent economic uncertainty.
By the first half of 2026, the State Budget remained on solid footing, underpinned by stronger tax revenues, customs and excise receipts, and non-tax state revenues.
“Overall, the first-semester performance shows that state revenue continues to maintain positive momentum,” said Minister of Finance Purbaya Yudhi Sadewa during a working meeting with the House of Representatives’ Budget Committee in Jakarta, Tuesday (7/7).
On the expenditure side, the Central Government’s spending reached Rp1,298.6 trillion in the first half of 2026, an increase of 29.4 percent compared with the same period last year. This spending supported key national priority programs, including the Free Nutritious Meals (MBG) Program, social assistance such as of government-paid health insurance for low-income communities, the Basic Food Assistance Card (Kartu Sembako), the Family Hope Program (PKH), the Indonesia Smart Card for Higher Education (KIP Kuliah), as well as the payment of civil servants’ salaries, holiday allowances and the 13th-month salary.
Meanwhile, transfers to regional governments reached Rp357.4 trillion, equivalent to 51.6 percent of the allocated State Budget ceiling and representing the highest first-half realization in the past five years.
The Government is also strengthening coordination with regional administrations to ensure that public spending more effectively supports development across the country.
In addition to financing priority programs, the State Budget continues to function as an economic shock absorber through fiscal policies designed to maintain economic stability. These include keeping subsidized fuel prices unchanged to help protect public purchasing power amid volatile global energy.
“The increase in central government expenditure realization in 2026 has acted as a catalyst for supporting economic growth during the first half of the year,” the Minister said.
By the end of the first half of 2026, the State Budget deficit was projected Rp734.3 trillion, equivalent to 2.85 percent of gross domestic product (GDP), remaining within a manageable level.
“The 2026 State Budget is working hard to drive stronger economic growth and support the national development priority agenda, while maintaining sound, credible, and accountable public financial management,” Purbaya concluded. (PR of Ministry of Finance/DND-PR of Ministry of State Secretariat) (RD/EP)
