2027 State Budget Posture: Purbaya Confirms Deficit at 2.4 Percent

Finance Minister Purbaya Yudhi Sadewa has confirmed that the 2027 State Budget (APBN) deficit will be kept below 3 percent. In the 2027 Draft State Budget (RAPBN), the government has set the deficit at Rp 671.2 trillion, or 2.4 percent of gross domestic product (GDP).

Purbaya said the government will continue to monitor the state budget condition from month to month. If the fiscal condition requires adjustment, he added, the government will implement spending efficiency measures.

“If we need efficiency, we will do efficiency. If circumstances force it. But it seems not. We will continue to keep the deficit below 3 percent in accordance with the President’s directive,” Purbaya said during a press conference on the 2027 RAPBN at the Directorate General of Taxes building in Jakarta on Friday evening.

In the 2027 RAPBN posture, the government estimates it will collect state revenue of Rp 3,426 trillion. Meanwhile, state expenditure requirements reach Rp 4,097.2 trillion. This means the money entering the state coffers is not yet sufficient to finance all expenditure.

There is a gap of approximately Rp 671.2 trillion, which will be covered through budget financing. On the expenditure side, Rp 3,362.2 trillion is allocated for central government spending, while Rp 735 trillion is allocated for transfers to the regions.

Compared with the 2026 outlook, next year’s state expenditure will increase from approximately Rp 3,950.5 trillion to Rp 4,097.2 trillion. Despite the increase in spending, the government is targeting a lower deficit.

The 2027 RAPBN deficit of Rp 671.2 trillion is lower than the 2026 outlook of Rp 734.3 trillion. As a ratio to the economy, the deficit also declines from 2.85 percent to 2.4 percent of GDP.

Purbaya said the government still has room to improve state revenue in line with economic growth. Therefore, the state budget condition will continue to be monitored throughout the year. “If anything happens, we always monitor our state budget condition from month to month,” Purbaya explained.

The 2027 RAPBN has been prepared with an economic growth target of 6 percent. With this target, the government is striving to keep spending supportive of growth while ensuring the deficit does not exceed the established limit.

In addition to the lower deficit, the primary balance is also projected to improve. The primary balance deficit falls from Rp 152.1 trillion in the 2026 outlook to Rp 20.9 trillion in 2027. This means that, before accounting for debt interest payments, the gap between government revenue and expenditure is increasingly approaching balance.