Under the 2011 state budget, budget allocations for fertilizer subsidies are set at Rp16.38 trillion, according to the main data of the 2011 state budget and the revised 2011 state budget at the Finance Ministry made available on Thursday.
Meanwhile, budget allocations for seed subsidies under the 2011 state budget and the revised 2011 state budget remain unchanged at Rp120.30 trillion, and so do the budget allocations for food subsidies which reach Rp15.27 trillion.
Fertilizer subsidies are still needed to help achieve agricultural production target for 2011.
The government has set a 2011 target of ground dry rice grains production of 68.8 million tons, corn 22 million tons, soybean 1.01 million tons and sugar 3.87 million tons.
Earlier, Finance Minister Agus Martowardojo said changes in budget items would prop up a budget deficit.
He said a deficit in the draft revised 2011 state budget would reach 2.1 percent of the gross domestic product compared to 1.8 percent in the 2011 state budget.
"I think the deficit in the revised 2011 state budget will reach 2 percent. So if it misses the target of 2 percent there will be a range of plus and minus 0.1 percent, namely 1.9 percent or 2.1 percent," he said.
Under Presidential Instruction No. 5 of 2011, President Susilo Bambang Yudhoyono ordered a number of ministers, heads of state bodies/institutes and regional heads to take necessary steps to safeguard rice production as well as to respond to the impact of extreme climate.
The finance minister was asked to allocate budget funds needed to implement the presidential instruction.
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Editor: Bambang
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