Budget deficit reached 1.8% in Oct 2019: Indrawati

Budget deficit reached 1.8% in Oct 2019: Indrawati

Finance Minister Sri Mulyani Indrawati during a press conference highlighting Our State Budget at the Finance Ministry in Jakarta, Monday (Nov 18, 2019). (ANTARA/AstridFaidlatulHabibah)

This year's budget deficit has come close to the target and increased significantly compared to that of last year
Jakarta (ANTARA) - Indonesia's budget deficit in the year ending October 31, 2019 reached Rp289.1 trillion, accounting for 1.8 percent of the national gross domestic product (GDP), Finance Minister Sri Mulyani Indrawati said. "This year's budget deficit has come close to the target and increased significantly compared to that of last year," she said at a press conference in Jakarta Monday.

The budget deficit in the same period last year stood at Rp229.7 trillion or 1.84 percent of the GDP, she said.

The budget deficit was affected by tax receipts which only reached Rp173.9 trillion or 65.7 percent of the target of Rp1.786.4 trillion set in the state budget, she noted.

"The tax receipts grew 1.2 percent compared to 17 percent in the corresponding period last year," she said.

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Non-tax state revenues which reached Rp333.3 trillion or 88.1 percent of the target of Rp378.3 trillion in the state budget also contributed to the budget deficit albeit, at a slow pace, she remarked.

The minister attributed the condition to macroeconomic assumption such as oil and gas production (lifting) and the oil price which was lower than its assumption and the rupiah's stronger exchange rate.

"The oil and gas lifting, as well as oil prices which fell short of assumption, coupled with the stronger exchange rate, will affect tax receipts from the oil and gas sector and the non-tax state revenues will no doubt become lower," she said.

The realized receipts have been used to support expenditures at ministries and non-ministerial government institutions which reached Rp633.5 trillion, or 74 percent of the budget ceiling of Rp855.4 trillion, she said.

"The expenditures at ministries and non-ministerial government institutions only grew eight percent, well below 14.7 percent last year. However, in terms of percentage to the total, the realization of expenditures at ministries and non-ministerial institutions reached 74 percent, higher than 69 percent recorded last year," she said.

During this period, expenditures at non-ministerial institutions were recorded at Rp487.6 trillion or 62.6 percent of the ceiling of Rp778.9 trillion.  

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