"The draft revised 2012 state budget bill will be submitted on March 1 by the latest, so we hope before the end of March and entering April we will have the revised 2012 state budget," he said here on Tuesday following a joint meeting on the submission of the revised 2012 state budget bill.
Hatta also said the government would maintain capital spending and increase the budget for infrastructure development using the excess budget from the previous year.
But, he said, those ministry expenditures which are not a priority would be cut in a bid to save up to Rp22 trillion.
"All expenditures that we could postpone, such as for office improvements and car purchases, will be cut. Cuts will also be made on official travel expenditures so that we can economize even more," he said.
Hatta said the government would maintain a deficit of up to 2.2 percent of the Gross Domestic Product (GDP) since many changes are to be made in government spending in the revised budget.
"The deficit must be below 3.0 percent. Our deficit will be around 2.2 percent, but it excludes the deficit in regional budgets, which are between 0.4 and 0.5 percent," he said.
Hatta added that the assumption of the Indonesian Crude Price would certainly be changed since the average world crude price has already reached US$118 per barrel. The assumed ICP for the 2012 budget is set at US$90 per barrel.
"It is impossible to maintain the ICP at US$90 per barrel. Now its average price is already at US$118 per barrel. We will simulate this trend. We are still exercising it. We cannot use data for a period of only one or two months, as the ICP is set for a full year," he said.
Deputy minister of finance Mahendra Siregar, meanwhile, said the expansion of the deficit from the earlier target of 1.5 percent would be made due to the increasing price of subsidized gasoline.
He noted that the new budget would be made by considering three factors, including the balance in the budget, challenges linked to subsidized gasoline and the momentum of economic growth. "We must maintain the three factors," he said.
Meanwhile, the minister of national development planning--head of national development planning board, Armida S Alisjahbana, said the rate of inflation could increase to six to seven percent if the plan to raise the fuel price is implemented.
"It will be above six percent. It will depend upon the price of food, especially staple foods. Therefore, we will assure the compensation, including for public transport," she said.
She said the government would also maintain the poverty rate at 10.5 percent to 11.5 percent, although the economic growth target is to be lowered to 6.5 percent.
(Uu.H-YH/INE/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2012
