JAKARTA (Reuters) -Indonesia’s parliament will on Tuesday vote on President Prabowo Subianto’s proposed budget for 2026, which includes spending of 3,842.7 trillion rupiah ($231.5 billion) and forecasts the fiscal deficit at 2.68% of gross domestic product.
The budget assumes economic growth of 5.4%, up from the 2025 target of 5.2%, and has a revenue target of 3,153.6 trillion rupiah.
In total, proposed spending for 2026 is 9% higher than estimated total spending for 2025, with the revenue target also up about 10% from the 2025 outlook.
The budget deficit for 2026 would be lower than the forecast for this year at 2.78% of GDP, also below a limit of 3% set by law.
The budget includes an expansion of Prabowo’s flagship programme of free meals for students and pregnant women, and increased defence spending.
In August, when the budget proposal was first presented to parliament, the free meals scheme was costed at 335 trillion rupiah in 2026, nearly double the allocation for this year, and there was a 37% increase in defence spending to 335.3 trillion.
($1 = 16,600 rupiah)
(Reporting by Stefanno Sulaiman; Editing by Martin Petty)
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