... fiscal condition is good but the oil fuel subsidy could exceed Rp200 trillion... "Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said the country's budget deficit is expected to widen to more than the previously set target of 2.23 percent as a result of growing energy subsidy.
"The budget deficit would be more than 2.23 percent. The fiscal condition is good but the oil fuel subsidy could exceed Rp200 trillion," Agus said here on Monday.
He estimated the deficit would in the range of 2.3 percent - 2.4 percent with subsidized oil fuel predicted to come cloise to 46 million kiloliters.
He said he would ask the energy and mineral resource minister slap tighter control in the distribution of subsidized fuel to prevent further increase in subsidy burden in 2013.
"We have been informed that the volume of subsidized fuel could increase by 1.2 million kiloliters in 2013 and the possibility has been discussed in the office of the coordinating minister. Efforts to control the distribution of subsidized oil fuel is important otherwise the impact would be bad in 2013," he said.
He said the budget burden as a result of larger supply of subsidized fuel than target will placed on the revised 2013 state budget after being audited by the Supreme Audit Agency (BPK).
He said he could not yet confirm if the government would decide an increase in the prices of subsidized oil fuel as an alternative to curb energy subsidy burden on the state budget next year.
"Currently we have no plan to raise the prices , but the people should know that we have big subsidy," he said.
It is therefore, important that distribution of subsidized fuels should be closely controlled , he said.
(AS/A014/H-ASG)
Editor: Ade P Marboen
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