The government must carry out three crucial steps-- to limit subsidized fuel consumption, to increase the state`s revenues and income, and to implement budget savings at the national and regional levels, he said here Thursday when speaking at the national development planning congress.
The head of state called on all parties to work together to carry out the three steps in order to secure the amended State Budget (APBNP) 2012.
He explained that the government had initially planned to increase fuel prices by Rp1,500 and allocate compensation funds amounting to Rp35 trillion.
The compensation funds would be given to those sectors affected by the fuel price hike, such as transportation, education, and rice for the poor.
The House of Representatives, however, rejected the government`s fuel price hike plan and accepted the proposal on state budget amendments.
Because the government failed to increase fuel prices, the government would face a deficit in the amended state budget. Therefore, it is crucial to limit subsidized oil consumption and secure the budget.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
