"The portion for infrastructure and projects relating to the MP3EI (the master plan for Indonesian economic development expansion and acceleration) would be bigger and more expansive," he said here on Monday.
He said with the spending to reach around Rp1,400 trillion in 2012 targets of expenditures would be more selected to press down inflation to 1.4 to 1.9 percent.
In view of that he assured budget for official travels, purchase of office equipment and building construction would be reduced in addition to electricity and oil use reduction.
"Spending for official travels must not exceed that of 2011. Although the budget is increased we will cut spending for official travels, purchase of office equipment and building construction," he said.
Finance minister Agus Martowardojo said the budget deficit for 2012 would be set at around 1.5 percent lower than the 2011 assumption of 2.1 percent through increasing state revenues.
"What seems to pose a challenge is revenue. It will be increased," he said.
For that he said programs that would increase state revenues would be continued while state expenditures would be made more efficiently and capital would be used productively in 2012.
Right now the basic macro-economic assumptions are set at 6.6 to 7.0 percent for economic growth, 4.0 to 5.3 percent for inflation, 950,000 to 970,000 barrels a day for oil lifting, US$75 to US$95 per barrel for the Indonesia Crude Oil, 5.5 to 6.75 percent for the rate of three-month state bonds and Rp8,600 to Rp9,100 for the rupiah exchange rate against the US dollar and a.4 to 1.9 percent budget deficit against the GDP.
According to plans the financial notes of the 2012 budget bill would be read out at the state address by President Susilo Bambang Yudhoyono on August 16 or ahead of the country`s independence anniversary on August 17. (Uu.H-YH/HAJM/A014)
Editor: Priyambodo RH
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