Indonesia`s budget deficit reaches 1.76 of GDP: Finance Minister

Indonesia`s budget deficit reaches 1.76 of GDP: Finance Minister

Finance Minister Sri Mulyani Indrawati (ANTARA FOTO/Aprillio Akbar/hp).

Jakarta, (ANTARA News) - The Indonesian state budget recorded a deficit of Rp259.9 trillion, or 1.76 percent of the national gross domestic product (GDP), last year, Finance Minister Sri Mulyani Indrawati said.

"This reflects positive realization of the state budget, with very sound and credible performance," she stated at a press conference highlighting the development of the state budget 2018 here on Wednesday.

The budget deficit was far below the target of Rp325.9 trillion, or 2.19 percent of the GDP set in the state budget 2018, she noted.

The deficit resulted from state revenues worth Rp1,942.3 trillion and state spending worth Rp2,202.2 trillion, she added.

The state revenues comprised tax receipts worth Rp1,521.4 trillion, non-tax state revenues worth Rp407.1 trillion, and grants worth Rp13.9 trillion, she remarked.

The state spending covered the central government`s spending worth Rp1,444.4 trillion and transfer of funds to regions and village funds worth Rp757.8 trillion, she revealed.

The minister stated that budget financing was only recorded at Rp300.4 trillion, owing to the adequate performance of state revenues until the end of last year.

"The decline in the realization of financing was also followed by a decline in the financing of net debts," she pointed out.

With the financing, the primary balance was only recorded at minus Rp1.8 trillion, meaning that the financing to offset debts increasingly declined, she noted.

Reporting by Satyagraha
Editing by Suharto