Jakarta (VNA) - Indonesia's state budget deficit widened to 695.1 trillion IDR (about 41.28 billion USD) by the end of 2025, as the government increased spending to support economic growth amid global headwinds, Finance Minister Purbaya Yudhi Sadewa said on January 8.
Speaking at a press conference, the minister said state revenue totaled 2,756.3 trillion IDR, while government spending reached 3,451.4 trillion IDR, resulting in a deficit equivalent to 2.92% of gross domestic product (GDP).
He said the deficit widened as the government needed to keep the domestic economy expanding amid elevated global pressures.
The deficit exceeded both the initial budget target of 616.2 trillion IDR, or 2.53% of GDP, and the revised outlook of 662 trillion IDR.
However, it remained below the statutory ceiling of 3% of GDP, Purbaya noted.
He said narrowing the deficit by cutting spending would have been counterproductive, as fiscal stimulus was needed at a time when economic momentum was softening.
By the end of 2025, government financing had reached 744 trillion IDR, while the primary balance recorded a deficit of 180.7 trillion IDR, reflecting an accommodative fiscal stance aimed at supporting priority programmes and maintaining economic stability, the official said./.
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