Finance Ministry Ensures Budget Deficit Is Under Two Percent

Nusa Dua, Bali, MINA — Finance Ministry`s Director General of Budget Askolani ensured that budget deficit realization at 2018-end can reach two percent of the gross domestic product (GDP), or lower than the targeted 2.19 percent of the GDP, Antara News reported.

“Estimates can be under two percent, smaller than 2.19 percent,” Askolani stated at a media meeting in Nusa Dua, Bali, Wednesday.

Also Read: Saudi Arabia Wins Bid to Host World Expo 2030

Askolani explained that this achievement projection was supported by income from the tax sector that could reach the target and spent more optimally and efficiently than the previous years.

“This is a combination of indications of income that can reach a total target and absorb more optimal spending from 2017,” he noted.

Although the projected budget deficit is lower than the target, he ensured that the development conducted until the year-end is still quality and expansive as planned.

Askolani noted that the government also continued to strive for the realization of the budget deficit in the coming years to be even smaller in line with the increasingly healthy management of the state budget.

Also Read: 148 Products from Indonesia Promoted at Sarawat Superstore Jeddah

This is supported by an increase in income from the tax and non-tax state revenue sectors accompanied by productive spending up to the village level.

Through this optimization effort, he believes the government is gradually no longer dependent on financing originating from debt.

“Indeed, the direction is getting smaller, and with the direction shrinking, the balance of the primary balance is also getting smaller,” Askolani pointed out.

The Ministry of Finance had earlier noted that the realization of budget deficit until the end of October 2018 had reached Rp237 trillion, or 1.6 percent of the GDP.

Also Read: Packaging Industry Supports Halal Ecosystem

Askolani estimates a reduction of Rp70 trillion to Rp80 trillion at the end of the year from the budget deficit target set in the State Budget of Rp325.9 trillion, or 2.19 percent of the GDP. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)

Also Read: Indonesia-Japan Agree on Energy Transition Cooperation