Purbaya: Budget deficit almost breaks constitutional limit

Jakarta, Thekabarnews.com—At the end of the 2025 fiscal year, when the state budget deficit was perilously close to the constitutional limit, Indonesia’s Finance Minister Purbaya Yudhi Sadewa said that there was a lot of anxiety inside the finance ministry.

Purbaya reported that the deficit was Rp695.1 trillion, or 2.92% of GDP. This was only a small amount below the legal limit of 3%. Senior officials expressed serious concern over the issue. They thought the deficit could go above the limit and hurt people’s trust in how the government handles money.

The near-breach was mostly due to state revenue falling short of expectations. Meanwhile, government spending continued to rise to support economic growth. Purbaya said that several staff in the finance ministry had trouble sleeping. They feared the consequences if the deficit continued to grow.

“We carefully considered every financial decision,” Purbaya said. He called that time one of the most stressful in previous budget management.

The government has set a smaller deficit goal of Rp689.1 trillion, or 2.68% of GDP, to avoid putting the same burden on the economy in 2026. The government expects to bring in Rp3,153.5 trillion and spend Rp3,842.7 trillion. These goals show a firmer commitment to budgetary discipline. However, they also leave room for economic activity to grow.

To make it easier to collect taxes, Purbaya ordered a big change in the positions of 22 high-ranking officers at the customs and excise directorate general. The change should make tax and customs enforcement better. These are two important ways for the state to make money.

Purbaya said that Indonesia’s fiscal space is now tiny. He noted that this situation means that the government needs to be particularly careful while planning and carrying out any initiative. In fact, a single mistake might put the budget in a hazardous place and put the stability of the economy at risk.

The events of 2025 show how fragile national finances can be when income drops but spending stays high. The government has to maintain the budget balanced without slowing down economic growth. Despite the ongoing global uncertainty affecting trade and investment, the challenge remains formidable.

The finance ministry has realized that Indonesia’s economy must maintain stability in the coming years. Therefore, they must closely monitor spending, strengthen revenue institutions, and make careful preparations.