Jakarta. Indonesia recorded a state budget deficit of Rp 240.1 trillion ($14 billion) in the first quarter of 2026, equivalent to 0.93% of gross domestic product (GDP), Finance Minister Purbaya Yudhi Sadewa said on Monday.

The government and the House of Representatives have agreed to cap the full-year 2026 budget deficit at no more than 3% of GDP.

State revenue in the January–March period reached Rp 574.9 trillion, or 18.2% of the full-year target of Rp 3,153.6 trillion ($185.1 billion). Meanwhile, government spending stood at Rp 815 trillion, representing 21.2% of the total budget allocation of Rp 3,842.7 trillion.

Purbaya said the widening deficit reflects a deliberate policy to accelerate fiscal stimulus earlier in the year.

“When there is a deficit, the public should not be surprised. Our budget is designed to run a deficit,” he said during a hearing with House Commission XI on fiscal and financial affairs at the parliament complex in Jakarta.

He added that the government has adjusted its spending pattern to be more evenly distributed throughout the year, with a larger portion disbursed in the early months to ensure faster economic impact.

“If spending is distributed more evenly, then the first-quarter deficit this year should indeed be larger than in the same period last year,” Purbaya said.

For comparison, the deficit in the first quarter of 2025 stood at Rp 99.8 trillion, or 0.41% of GDP, indicating a 140.5% year-on-year increase.

Despite the sharper early-year deficit, the government maintains its full-year 2026 deficit target at Rp 689.1 trillion, or 2.68% of GDP.

Tax revenue totaled Rp 462.7 trillion as of end-March, while customs and excise contributed Rp 67.9 trillion. Non-tax state revenue reached Rp 112.1 trillion, equivalent to 24.4% of its annual target.