"All ministries and state institutions must cut their budgets for operational costs, operational spending and other non-priority expenditures by up to Rp50 trillion to adjust with the revised budget" he said on Thursday.
He further stated that ministries and state institutions could cut their budgets for non-significant expenditures, such as cost of official travel, seminars, meetings and official car purchases.
Earlier in March, President Widodo had called several cabinet ministers to a meeting to discuss preparations for the submission of the draft revised budget of 2016 and the ease of doing business and the governments medium and long-term working plans.
Finance Minister Bambang Brodjonegoro, who attended the meeting along with Chief Economic Minister Darmin Nasution, Foreign Minister Retno Marsudi and Cabinet Secretary Pramono Anung disclosed that the government planned to make new debt totaling Rp21 trillion to cover the deficit in the draft revised budget of 2016.
"The deficit will likely widen from 2.15 percent to 2.5 percent of the gross domestic product due to an additional spending of Rp40 trillion," he said.
Although the government has already cut state expenditures the deficit in the draft revised budget of 2016 remains bigger.
Bambang said with regards to state expenditures that spending at ministries and state institutions had dropped from Rp784 trillion to Rp738 or around Rp45 trillion while spending at non-ministries and non-state institutions was up by Rp9.6 trillion.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
