JAKARTA (Reuters) -Indonesia's parliament on Tuesday approved 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, which the parliament speaker put to a vote, 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.
Ahead of the vote, the chair of the budget committee, Said Abdullah, told parliament the budget would enable the government to begin a turnaround.
"The 2026 state budget is an important asset for the government to begin turning things around, kickstarting industrial revival, and revitalising national industries that can support the provision of basic needs for the people, such as the textile, agriculture, and energy industries," he said.
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)
