"We want to give a signal that subsidy is not a matter of fiscal only but also a correct budget, namely a budget which would spent for a price subsidy," Bambang Brodjonegoro, acting chief of the Finance Ministry`s Fiscal Affairs, said here on Tuesday.
He said that the provision of a subsidy should not create the impression that it was comfortable to live in Indonesia because subsidy could be enjoyed by any party, while actually the subsidy was really needed by poor people.
"The subsidy should not give wrong signal that in Indonesia those who do not deserve subsidy could enjoy it. That`s the main point," he said.
He said that even though the budget deficit could increase from the state budget assumption of 1.8 percent because of additional subsidy, the government would do its best to prevent the increase to more than 2 percent.
"We have the main target, namely the deficit should not exceed 2 percent. Hopefully, it would be below that level," Bambang said.
In the meantime, Finance Minister Agus Martowardojo has said that it was possible for the subsidy to increase by Rp16 trillion from previous nominal value of Rp124.7 trillion.
However, the government could not yet ascertain the figure because additional budget and subsidy volume would depend on the oil price fluctuations.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2011
