2027 Draft State Budget Deficit Set at 2.40 Percent

The government has designed the 2027 Draft State Budget (RAPBN) deficit at 2.40 percent of gross domestic product (GDP), or Rp671.2 trillion. This figure represents a decrease compared to the 2026 State Budget (APBN) target of 2.68 percent of GDP, or Rp689.1 trillion.

President Prabowo Subianto stated that financing needs for 2027 will be adjusted to this deficit target. He made the remarks during the 1st Plenary Session of the 1st Sitting Period of the 2026–2027 Session Year at the Parliament Complex in Jakarta on Friday (14/8).

“Financing is planned at Rp671.2 trillion, with a deficit of 2.40 percent of gross domestic product (GDP),” President Prabowo said in his speech presenting the 2027 RAPBN and Financial Note.

The President affirmed the government’s commitment to maintaining fiscal discipline by strengthening the balance between state revenue and expenditure. Although the target has been set, the government remains open to reducing the deficit further to achieve healthier budget management.

“We will strive to reduce this deficit even further,” Prabowo stressed. He added that the ideal condition to be achieved is to minimise the deficit towards a balanced budget.

On the revenue side, the 2027 RAPBN targets state revenue of Rp3,426 trillion. This target represents a significant increase of 8.64 percent compared to the 2026 APBN revenue target of Rp3,153.6 trillion.

Meanwhile, state expenditure in 2027 is projected to reach Rp4,097.2 trillion, an increase of 6.62 percent from the 2026 APBN ceiling of Rp3,842.7 trillion. With this posture, the total budget financing for 2027 amounts to Rp671.2 trillion, which is Rp17.9 trillion lower than the previous year’s financing.

For comparison, the government estimates that the actual budget deficit realisation by the end of 2026 will be at 2.85 percent of GDP, slightly above the initial 2026 APBN target.