2027 State Budget: Prabowo Targets Rp4,097 Trillion in Spending and a Deficit of 2.40 Percent of GDP

President Prabowo Subianto. (Photo: ANTARA)

JAKARTA - President Prabowo Subianto has outlined the 2027 State Budget (APBN) plan with a total state expenditure of Rp. 4,097.2 trillion or increased compared to the 2026 State Budget allocation of Rp. 3,842.7 trillion.

The target budget was conveyed by Prabowo in the Government's Introduction/Explanation of the Bill on the 2027 Fiscal Year State Budget along with the Financial Note and supporting documents, Friday, August 14.

Prabowo said that the state budget in 2027 would be directed to support eight priority agendas of the government, including food sovereignty, energy and water independence, education, health, industrialization and industrialization, infrastructure and housing development, and strengthening resilience against disasters.

"To carry out all these agendas, the State Budget for 2027 is planned at Rp. 4,097.2 trillion, up from Rp. 3,842.7 trillion in the 2026 State Budget," he said.

On the revenue side, the government estimates that state revenues in 2027 will reach IDR 3,426 trillion or increase from the state revenue target in the 2026 State Budget of IDR 3,153.6 trillion.

Meanwhile, the budget financing is planned at Rp671.2 trillion and the 2027 state budget deficit is targeted at 2.40 percent of the Gross Domestic Product (GDP).

"This deficit figure is down from the 2026 state budget financing plan, namely IDR 689.1 trillion, with a deficit of 2.68 percent of Gross Domestic Product," he said.

Prabowo emphasized that the government would continue to strive to reduce the budget deficit in the coming years.

According to him, the ideal condition that the government wants to achieve is a deficit as low as possible until it reaches a balanced budget.

"We understand that the ideal deficit is the smallest, even our ideal is a balanced budget," he explained.