The president, when he opened a cabinet plenary session to discuss the implementation of the state budget for 2011 and the formulation of one for 2012 here on Friday, reminded that the budget deficit should not be set too high.
"I have outlined that the budget deficit should be formulated correctly. A balanced budget is better, except if we badly need it for stimulating growth, development financing and the running of the administration," the president said.
However, if there is no urgency, the president asked that the deficit be kept as small as possible, the more so if it would be covered by external loans.
"We should be careful. We should not set a high deficit only because we want to achieve a growth target, much less if it is to be covered by external loans," President Yudhoyono said.
He said that in order to reduce deficit, government expenditures could be reduced, even if it would have impact on the decline in the economic growth.
The president hope that economic growth should not only be boosted by government spending but also by public consumptions and investment.
(Uu.A014/HAJM/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2011
