"What we want to safeguard is our fiscal condition."Jakarta (ANTARA News)- Finance Minister Agus Martowardojo said the government would be focused on controlling the budget deficit set at Rp150.2 trillion in the 2013 draft budget or 1.62 percent of the gross domestic product.
"What we want to safeguard is our fiscal condition. If a deficit does happen it must be kept under control," he said here on Thursday.
He said the world economies are currently slowing down as several countries are suffering current account deficits, rising inflation and currency depreciation against the US dollar.
In view of that he said Indonesia must be alert as indirectly the situation could affect the country`s budget deficit and reduce investment which would be one of the main drivers of growth in 2013.
"We must seriously conduct structural reform so that investors would feel comfortable investing in the country," he said.
The minister said what he meant by structural reform was improving infrastructural means, accelerating implementation of land clearing regulation and harmonizing local and central government regulations.
"Those things must continue to be done," he said.
To maintain fiscal sustainability and health the minister said the government would control the budget deficit to remain at a safe level and the debt ratio to GNP at a manageable level.
The targets would be achieved by optimally developing sources of state revenues while maintaining the business climate, discipline in budget use and implementing a prudent borrowing policy.
To boost the national budget`s role as a development stimulus he said the government would improve the quality of state spending by increasing efficiency through reducing unproductive spending, financial leakages, smoothing budget absorption and increasing the budget for infrastructure development to spur growth.
(Uu.H-YH/F001)
Editor: Priyambodo RH
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