Indonesia Posts January Budget Deficit as Spending Jumps 26% (1)

Indonesia posted a rare budget shortfall in January after the government followed through on its pledge to accelerate spending to support economic growth.

The fiscal deficit stood at 54.6 trillion rupiah ($3.25 billion), equivalent to 0.21% of gross domestic product, Finance Minister Purbaya Yudhi Sadewa said in a briefing on Monday.

Post-pandemic, the government has typically posted a surplus in the first month of the year, when tax revenues are strong and projects are just getting started.

“Hopefully, the state budget can continue to drive economic growth in the first quarter to maintain the momentum,” said Purbaya, adding that he ...