Indonesia's year-end budget deficit to reach 1.83-2.04 percent of GDP

Indonesia's year-end budget deficit to reach 1.83-2.04 percent of GDP

Finance Minister Sri Mulyani Indrawati. (ANTARA News/Agus Salim)

Jakarta, (ANTARA News) - Finance Minister Sri Mulyani Indrawati projected Indonesia's budget deficit to reach 1.83-2.04 percent of the gross domestic product (GDP) at the end of 2018, lower than the 2.19 percent target set in the state budget.

"The year-end budget deficit is likely to stay below two percent or in the range of 1.83-2.04 percent, well below 2.19 percent," she noted at a press conference on the development of the state budget here on Wednesday.

The lower-than-projected budget deficit at the end of 2018 will be the result of good fiscal management as is reflected by an increase in tax revenues and realization of the central government's spending, she noted.

By the end of September 2018, tax receipts grew 16.5 percent while the central government`s spending rose 16.1 percent as compared to the same month last year, she pointed out.

"With the good trends of revenues and spending, particularly very strong revenues, the deficit outlook at the end of the year will be very encouraging," she stated.

As of September 30, 2018, the budget deficit reached Rp200.2 trillion, accounting for 1.35 percent of the national GDP, she remarked.

"The budget deficit reached Rp200 trillion as of September 2018 as compared to Rp272 trillion in the same period last year. Hence, it fell by almost Rp72 trillion from last year`s figure," she pointed out.

The 1.35 percent budget deficit in September 2018 was also lower than two percent recorded in the same month last year, she noted.

The budget deficit resulted from the difference between state revenues, which reached Rp1,312.3 trillion, or 69.3 percent of the target, and spending that reached Rp1,512.6 trillion, or 68.1 percent of the target.

Reporting by Satyagraha
Editing by Suharto

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