Jakarta. Finance Minister Sri Mulyani has just dropped a hint that Indonesia had wrapped up 2024 with a state budget deficit that is “far below” than the earlier estimate of 2.7 percent of the national gross domestic product (GDP).

In the second half of 2024, the government decided to raise the 2024 fiscal deficit estimates from its initial cap of 2.29 percent to 2.7 percent. The government said at the time that public spending had been soaring, among others, due to the capital relocation project and elections that year.

But when kicking off the first trading day of 2025, Sri Mulyani revealed Thursday that the year-end deficit turned out to be smaller than predicted, even closer to what the government had originally intended. The minister refused to go into more details, saying that she would make the official announcement in an upcoming presser.

“The 2024 deficit is closer to what was earlier stated in the 2024 State Budget Law. This is such a remarkable feat,” Sri Mulyani said at Jakarta’s Indonesia Stock Exchange, alluding to the 2.29 percent target.

“But we ended up with a deficit that is far below the 2.7 percent cap that we have predicted. We have ended 2024 with a relatively healthy and safe budget report. This can become a strong asset for us to welcome the 2025 fiscal year," Sri Mulyani said.

Indonesia has set a 2.53 percent cap on its budget deficit for the 2025 fiscal year. This is equivalent to about Rp 616 trillion ($37.9 billion). The year 2025 marks President Prabowo Subianto’s first year in office, and his cabinet members are working to deliver his campaign promises. For instance, the government has set aside Rp 71 trillion to feed Indonesian schoolkids free, nutrient-dense meals this year. This free meal program is set for launch on Monday.