Finance Minister Bambang Brodjonegoro said that although cuts have been made, the deficit in the draft revised budget of 2016 would still increase.Jakarta (ANTARA News) - Indonesian Finance Minister Bambang Brodjonegoro said here on Thursday that the government would seek new loans worth Rp21 trillion to cover the nation's budget deficit.
"The deficit will likely widen from 2.15 percent to 2.5 percent of the gross domestic growth due to additional spendings of Rp 40 trillion," he said during a press conference, flanked by Cabinet Secretary Pramono Anung at the State Secretariat building.
Minister Brodjonegoro said that to cover the additional spendings, Rp21 trillion would be needed, in addition to Rp19 trillion from last years excess cash.
He further said that, although cuts have been made, the deficit in the draft revised budget of 2016 would still increase.
The finance minister noted that spending in ministries and state institutions has been lowered by Rp45.5 trillion from Rp784 trillion to Rp738 trillion, while spending in non- ministries and state institutions rose Rp9.6 trillion.
He added that there was additional spending of Rp5.2 trillion to meet urgent needs, including at the ministry of public works for the Asian Games preparations as, well as increased spending for counter-terrorism efforts in the ministry of defense and rehabilitation of penitentiaries, totaling Rp1.6 trillion.
More funds are also needed for the Papua special autonomy program and infrastructure development in Papua.
The finance minister also said that land acquisition for infrastructure projects would be centrally coordinated by the State Asset Management, which is under his office, and "this body needs Ro16 trillion to accelerate the completion of the Trans-Java toll road project."
The government would also have to provide Rp6 trillion to fund the BPJS universal health insurance program to assure its financial sustainability.(*)
Editor: Heru Purwanto
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