Indonesia's Budget Deficit Estimated to Reach 2.2% of GDP in 2015
Indonesia's budget deficit could rise to 2.2 percent of the nation's gross domestic product (GDP) in 2015 (from a projected 1.9 percent of GDP) as the government's tax revenue may fall short of its target. Based on the revised 2015 State Budget, the government targets to collect IDR 1,489 trillion (approx. USD $110 billion) worth of tax money this year. However, as of August 2015 tax revenue collection stood at 45.8 percent of the 2015 target (or approx. IDR 593 trillion).
It is estimated that the Indonesian government will see a tax shortfall of about IDR 250 trillion (approx. USD $18.5 billion) this year due to the economic slowdown and low commodity prices. In order to achieve the target that was set in the revised 2015 state budget the government may decide to delay unnecessary spending or revise the target.
The Indonesian government targets total government spending of IDR 1,984 trillion in the revised 2015 budget.
Since the Asian Financial Crisis, Indonesian government uphold a prudent fiscal policy.
During Susilo Bambang Yudhoyono's administration (2004-2014) the country's debt-to-GDP ratio declined from 42 percent in 2006 to 25 percent in 2014.