TEMPO.CO, Jakarta - Indonesian Finance Minister Sri Mulyani has signaled that budget efficiency will continue next year. This year's budget cut will be the basis of evaluation in preparing the 2026 State Budget.
The state treasurer stated that it will be two months until the budget efficiency evaluations are announced. "The ministry and agency performances and their efficiency measures will certainly be taken into consideration while allocating budget ceilings for the State Budget," she said after a plenary session at the parliamentary building on Tuesday, May 20, 2025.
The 2026 State Budget preparation is conducted in a selective manner while attending to the government's priorities. Budget allocation strategies will support 8 programs within President Prabowo Subianto's Asta Cita. "Its design will still consider the perspective of macroeconomic performance," she said.
Through the strengthening of spending quality, state expenditure in 2026 will be allocated in the range of 14.19 percent to 14.75 percent of Gross Domestic Product (GDP). Meanwhile, the 2026 fiscal deficit is targeted in the range of 2.48 percent to 2.53 percent of GDP.
Sri has submitted the Macroeconomic Framework and Fiscal Policy (KEM-PPKF) 2026 document to the parliament in today's plenary session. This draft will be the basis for the preparation of the 2026 State Budget.
She also presented the budget for several priority programs in 2026. Next year's education budget is estimated to reach Rp727 trillion to Rp761 trillion. Meanwhile, the healthcare budget is expected to hit between Rp181 trillion and Rp228 trillion.
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