Bambang said the new budget deficit was predicted by taking into consideration a Rp50.6 trillion cut in the state spending, shortfall in non tax state revenues from natural resources by Rp70 trillion and shrinking income tax revenue in the oil and gas sector estimated at Rp17 trillion.
Coordinating Minister for Economy Darmin Nasution said the government would cut spending by state agencies to reduce the budget burden.
"Mostly in goods spending," he said briefly .
In the plenary cabinet session headed by the president a number of decisions were made amending a number of macro economic targets for 2016.
Inflation target was set at 4 percent lower than 4.7 percent in the original budget, the rupiah value was set 13,400 to the U.S. dollar stronger than 13,900 per dollar and the price of the Indonesian crude oil is set at US$35 per barrel from originally US$50 per barrel.
The economic growth target is maintained at 5.3 percent.
The government will soon submit the draft revision of the state budget possibly with revision in ta revenue to the Parliament in the next session of legislative body on May 17, 2016. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
