State Budget Deficit Reaches Rp 240.1 Trillion by March 2026, Purbaya Says It Aligns with Initial Design

JAKARTA, KOMPAS.com - The 2026 State Budget recorded a deficit of Rp 240.1 trillion up to March 2026. This figure is equivalent to 0.93% of gross domestic product.

Finance Minister Purbaya Yudhi Sadewa stated that the early-year deficit is part of the budget design.

“So when there is a deficit, the public, ladies and gentlemen, should not be surprised. Our budget is indeed designed with a deficit. If spending is distributed more evenly throughout the year, the first quarter deficit should be larger than last year,” Purbaya said during a working meeting with the House of Representatives Commission XI on Monday (6/4/2026).

State spending reached Rp 815 trillion or 21.2% of the ceiling. This figure increased by 31.4% compared to the same period last year.

The faster rise in spending compared to revenue drove the deficit in the early year.

The primary balance also recorded a deficit of Rp 95.8 trillion. Meanwhile, budget financing has been realised at Rp 257.4 trillion or 37.3% of the target.

The government assesses that the domestic economic condition remains solid. Several indicators show resilience amid global pressures.

Industrial activity has remained in the expansion zone for eight months. The manufacturing PMI was at 51.1 in March 2026.

Investment credit growth reached 20.7%.

External performance remains maintained. The trade balance recorded a surplus and foreign exchange reserves equivalent to 5.9 months of imports.

Public purchasing power remains strong. Growth is evident in household consumption, retail sales, and vehicle sales.

The government assesses that current inflation pressures are technical in nature. Base effects are the main cause, not weakening economic fundamentals.