"I see that the government which set the economic growth target at lower than 5.8 percent reflected its understanding of the fact that the world economic growth is undergoing corrections which affect Indonesias economy," the central bank governor said after attending a working meeting with Commission XI of the DPR here on Monday night.
Agus said that the government could set higher economic growth by conducting structural correction in the expenditure sector. After all, the government already has an adequate fiscal room from the energy subsidy expenditure reallocation.
"External factor that the government should be aware of is whether the governments funding sources can be effective and the reallocation of the fuel oil subsidy expenditure can already be realized. This largely depends on the selection of the governments project that could be finished in 2015," he added.
The government and Commission XI of the House of Representatives (DPR) agreed to lower economic growth assumption from 5.8 percent in the 2015 state budget to 5.7 percent in the draft 2015 revised state budget at a hearing on Monday night.
"The 5.7 percent growth is set with an extra effort after considering the budget expenditure and the effect of the quantitative easing in Europe and Japan," Finance Minister Bambang Brodjonegoro made the explanations in the working meeting with Commission XI of the DPR.(*)
Editor: Heru Purwanto
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