2027 State Budget Rises to Rp 4,097 Trillion, Purbaya Confirms Deficit Remains Safe

Finance Minister Purbaya Yudhi Sadewa has stated that the 2027 state budget deficit will be maintained below 3%, even though the 2027 State Budget Draft from President Prabowo Subianto has risen by 6.6% to Rp 4,972.2 trillion.

The government estimates that the state budget deficit will actually decline by 2.6%, from Rp 689.1 trillion to Rp 671.2 trillion. The deficit-to-GDP ratio is projected to fall by 0.28 percentage points, from 2.68% to 2.40%.

According to Purbaya, the increase in the 2027 state budget, which has surpassed the Rp 4,000 trillion mark, remains safe, given that the 2027 tax revenue projection has also been set to rise by 12.1% to Rp 2,591.4 trillion.

Previously, Purbaya also said that tax revenue up to the end of July 2026 was still growing by more than 23% compared with the same period last year. This growth trend in tax revenue is predicted to continue into 2027.

“Well, we can see that tax revenue under current conditions has already grown by that much. It can be estimated that the deficit will be 2.40%. Tax revenue looks set to improve. If it remains the same as now, it could be even better than planned,” Purbaya said on Friday (14/8).

“The tax ratio may rise, not to 9.3%, but perhaps higher. And if illegal cigarettes are brought into the legal market, there will be a little additional revenue later. And if economic growth accelerates, we will also collect even more tax. So we will work on that,” he added.

Purbaya said the government will always monitor the state budget condition from month to month. If efficiency measures are needed at any time, the government will implement them.

“But I don’t think efficiency measures will be necessary. We will continue to keep the deficit below 3% in accordance with the President’s instruction,” he said.