economy

Sri Mulyani Ensures That The 2026 State Budget Supports The Equitable Distribution Of Regional Welfare

Finance Minister Sri Mulyani Indrawati has confirmed that the Draft State Budget (RAPBN) for the Fiscal Year 2026 is designed to also support the equitable distribution of regional welfare.

"The 2026 State Budget is structured as a national instrument to achieve priority development agendas while also performing allocation and distribution functions for equitable welfare through measurable and accountable Regional Transfer Funds (TKD)," said Sri Mulyani after attending the Working Meeting of Committee IV of the Regional Representative Council (DPD RI), as quoted from Instagram @smindrawati in Jakarta on Wednesday.

She detailed that the TKD in the 2026 RAPBN is aimed at enhancing competitiveness through productive spending, synergy with innovative financing, and strengthening local taxing power.

Thus, the TKD is expected to significantly impact regional development and welfare.

The Minister of Finance emphasized that the relationship between the central and regional governments in a large country like Indonesia operates dynamically, necessitating continuous refinement of policies.

"However, because the state finances are limited, we must also maintain the dynamics of the central-regional relationship sustainably," she stated.

She appreciated the aspirations, views, and constructive suggestions from the senators of DPD RI.

Sri Mulyani referred to the State Budget (APBN) as a unifying tool for the nation, thus she is committed to continuously working on stitching and maintaining the social, political, economic, and financial seams between regions through the instruments of the APBN.

It is important to note that the House of Representatives (DPR) and the government have agreed on a deficit target for the 2026 State Budget (RAPBN) of between 2.48 percent and 2.53 percent of the Gross Domestic Product (GDP).

The target for state revenue in the 2026 RAPBN is set at between 11.71 percent and 12.31 percent of GDP, which includes tax revenue of between 8.90 percent and 9.24 percent of GDP, customs and excise revenue of between 1.18 percent and 1.30 percent of GDP, as well as non-tax state revenue (PNBP) of between 1.63 percent and 1.76 percent of GDP.

Meanwhile, the target for state expenditure has yet to be agreed upon. The latest discussions proposed that state expenditure should be within the range of 14.19 percent to 14.75 percent of GDP.

Tag: Finance Minister RAPBN Sri Mulyani Indrawati