State spending on energy subsidy reaches Rp174 tln: Finance Ministry

The figure is higher than that of the same period last year when it was Rp127.4 trillion or 65 percent of the Rp195.3 trillion budget ceiling.
Jakarta (ANTARA News) - State spending on subsidized energy in the year to early October 2012 reached Rp174.8 trillion or 86.4 percent of the Rp202.5 trillion ceiling set in the revised 2012 state budget, according to the Finance Ministry.

"The figure is higher than that of the same period last year when it was Rp127.4 trillion or 65 percent of the Rp195.3 trillion budget ceiling," the ministry`s director general of state treasury, Agus Suprijanto said here on Tuesday.

He said the state spending on subsidized energy exceeded non-tax state revenues from the oil and gas sector which reached Rp105.2 trillion or 53 percent of the targeted Rp198.3 trillion.

The higher-than-expected spending on energy subsidy until October 5, 2012 may cause the overall state spending at the end of this year to reach 99 percent of the target, he said.

Right now the overall state spending reached Rp999.3 trillion or 64.5 percent of the Rp1,548.3 trillion budget ceiling, he said.

"The overall state spending may reach 98-99 percent (of the target at the end of this year), fueled among others by spending on subsidized energy," he said.

Earlier, at a meeting with the House of Representatives` budget body the government proposed extra energy subsidy of Rp103.5 trillion, bringing the total amount of fuel and electricity subsidy to Rp305.9 trillion at the end of this year.

The figure will consist of fuel subsidy worth Rp216.7 trillion and electricity subsidy worth Rp89.1 trillion, according to acting head of the ministry`s fiscal policy board, Bambang Brodjonegoro. (*)

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