JAKARTA: Indonesia’s parliament will vote on President Prabowo Subianto’s proposed 2026 budget, which outlines spending of 3,842.7 trillion rupiah ($231.5 billion).
The budget forecasts a fiscal deficit of 2.68% of gross domestic product and assumes economic growth will accelerate to 5.4%.
Revenue is targeted at 3,153.6 trillion rupiah for the 2026 fiscal year.
Total proposed spending for 2026 represents a 9% increase compared to estimated expenditure for 2025.
The revenue target for next year is also approximately 10% higher than the 2025 outlook.
The projected 2026 budget deficit is lower than this year’s forecast of 2.78% of GDP.
This deficit figure remains comfortably below the legal limit of 3%.
The budget proposal includes a significant expansion of Prabowo’s flagship free meals programme for students and pregnant women.
Defence spending also receives a substantial increase under the proposed plan.
When first presented to parliament in August, the free meals scheme was costed at 335 trillion rupiah for 2026.
This allocation is nearly double the amount set aside for the programme this year.
Defence spending is slated for a 37% increase to 335.3 trillion rupiah. – Reuters
