"Of course, (the budget deficit of) 2.7 percent level has been reached and we must control it as the threshold is 3 percent," Darmin said.Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs Darmin Nasution has warned about a widening budget deficit that may inch close to 3 percent of the national gross domestic product (GDP) by the end of this year.
"Of course, (the budget deficit of) 2.7 percent level has been reached and we must control it as the threshold is 3 percent," he said here on Wednesday.
He said one of the factors responsible for widening of the budget deficit is a shortfall in tax receipts, expected to reach 85 percent of the target.
The lower-than-expected tax receipts may be the result of low economic growth and high tax receipt target set in the revised 2015 state budget, he said.
"It is a matter of economic slowdown that has led to a shortfall in tax receipts, while at the same time, the target of tax receipts is also too high. The reason is a combination of both," he said.
He appreciated the decision of Director General of Taxation Sigit Priadi Pramudito to resign. The resignation reflects his sense of responsibility for tax receipts which are expected to fall short of the target set in the revised 2015 state budget.
"He resigned because he felt responsible for the fact that what was planned cannot be achieved. In my view, we must respect it," he said.(*)
Editor: Heru Purwanto
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