APBN Deficit for Q1-2026 Reaches Rp 240.1 Trillion, Finance Minister Purbaya Provides Explanation

The government recorded a state budget (APBN) deficit of Rp 240.1 trillion in the first quarter of 2026. This figure is equivalent to 0.93% of gross domestic product (GDP). Finance Minister Purbaya Yudhi Sadewa stated that the fiscal deficit occurred in line with the realisation of state expenditure reaching Rp 815.0 trillion during the January-March period this year. According to him, the APBN deficit is a normal occurrence. The current APBN deficit level is in line with the increase in state expenditure realisation. Acceleration of spending is being carried out to drive economic growth from the beginning of the year. “The budget deficit is something normal. We continue to monitor throughout the year what the revenues and expenditures will be like,” Purbaya said during a working meeting with Commission XI of the House of Representatives (DPR RI) in Jakarta on Monday (6/4/2026). “So we are very careful in considering this. This is by design the acceleration of spending, as I mentioned earlier that ministries and agencies are working faster. This will provide a strong contribution to GDP growth in the first quarter of 2026,” he explained. On the other hand, tax revenues in the first quarter of 2026 reached Rp 394.8 trillion, or grew 20.7% compared to the same period the previous year. This increase is seen as reflecting improved economic activity from the beginning of the year. The Finance Minister said that the growth in tax revenues is in line with the economic conditions that are starting to show recovery. “So the increase in tax revenues is in line or confirms that the economy is truly experiencing improvement,” he said. “VAT and luxury goods tax grew by 57.7%. This means the quality of the economy is much busier compared to the same period last year,” the Finance Minister continued. In addition, revenues from various types of income tax (PPh), including corporate income tax, personal income tax, PPh 21, final PPh, PPh 22, and PPh 26, also showed increases. Personal income tax and PPh 21 grew by 15.8%. Purbaya noted that this indicates an improvement in the national economy, as well as enhanced performance by the tax authority. “The government continues to strengthen tax regulations to make them fairer and provide legal certainty, thereby creating a sense of security for business actors in carrying out their economic activities,” he said. In line with the increase in tax revenues, total state revenues for the January-March 2026 period reached Rp 574.9 trillion, or up 10.5% year-on-year. On the other hand, the realisation of state expenditure in the first quarter of 2026 reached Rp 815.0 trillion. Thus, the APBN deficit was recorded at Rp 240.1 trillion, or equivalent to 0.93% of gross domestic product (GDP).