Finance Ministry Changes Government Spending Pattern, Q1 2026 Realisation Surges 31.4%

JAKARTA, KOMPAS.com - The Ministry of Finance (Kemenkeu) is changing the pattern of state spending starting this year to ensure that state expenditure is distributed more evenly. Deputy Minister of Finance Juda Agung stated that previously, the state budget expenditure was mostly spent towards the end of the year. Meanwhile, at the beginning of the year, its realisation tended to be lower. However, the government wants state spending to be realised more evenly from Quarter I to Quarter IV so that its impact on economic growth is more uniform. As a result, in Quarter I 2026, state spending has been realised at Rp 815 trillion or 21.2% of the spending ceiling in the 2026 State Revenue and Expenditure Budget (APBN) of Rp 3,842.7 trillion. This realisation grew 31.4% year-on-year (yoy). Juda revealed that this realisation is higher compared to last year, which was only Rp 620.3 trillion or 17.1% of the total ceiling, with growth of just 1.4% (yoy). “So indeed, spending this year is quite fast compared to previous years,” Juda said. With the government’s efforts to accelerate spending at the beginning of this year, it is hoped that the effect will increase public consumption, thereby allowing economic growth in Quarter I 2026 to be higher. “The Ministry of Finance’s projection is that growth in Quarter I is estimated at 5.5%, considering the significant increase in VAT and luxury goods tax, consumer expectations, and so on; this makes us optimistic that Quarter I will grow by 5.5%,” he said. Juda continued that Kemenkeu targets state spending realisation in Quarters II, III, and IV to be 26% each of this year’s spending ceiling. “Indeed, the goal is for economic growth to be even, fast, and occur in the same year. So there is a change in the government’s consumption pattern,” he added.