Indonesia: Sri Mulyani Predicts 2018 State Budget Deficit at 1.87 Percent

TEMPO.CONusa Dua¬ –¬ Finance¬ Minister¬ Sri Mulyani¬ Indrawati¬ ensures¬ the¬ state budget¬ deficit¬ at the end of 2018 will be¬ around¬ 1.86-1.87¬ percent¬ of the gross domestic product (GDP). The prediction is lower than the target set in the 2018¬ State Budget¬ (APBN) which was 2.19¬ percent.

‚ÄúNow the¬ deficit¬ is still at 1.95¬ percent. Until year‚Äôs end, it is estimated to be 1.86-1.87¬ percent,‚ÄĚ said Sri on Thursday, December 6, during a media meeting in Nusa Dua, Bali.

Sri Mulyani asserts the realization of state deficit is supported by a strong absorption from the tax sector and the effective and efficient of the government’s work throughout the year.

‚ÄúOur¬ state¬ deficit¬ in a whole will be lower because we have strong absorption and the monthly expenditure is lower than the estimation of APBN. This shows stronger growth of the revenue than the expenditure,‚ÄĚ Sri explains.

According to the minister, such improve in state deficit budget, which is gradually lower, helps to support the primary balance that in the year’s end will be recorded at minus Rp15 trillion or nearly zero.

Per November 2018, the¬ state budget¬ deficit¬ is recorded at Rp287.9 trillion or 1.95¬ percent¬ of GDP. The realization is accounted from¬ state¬ revenue that worth Rp1,654.5 trillion or 87.3¬ percent¬ of the target and¬ state¬ expenditure of Rp1,942.trillion or 87.5¬ percent¬ of the¬ budget¬ ceiling.

The¬ state budget¬ deficit¬ is at the lowest figure since 2014, and so that shows better and optimal management of APBN.

Earlier in 2014, the¬ state budget¬ deficit¬ recorded at 2.19¬ percent¬ to GDP, 2.78¬ percent¬ in 2015, 2.53¬ percent¬ in 2016, and 2.59¬ percent¬ in 2017.

The government continuously strives to maintain the¬ state budget¬ deficit¬ below three¬ percent¬ to GDP as mandated under the Law on¬ State¬ Finance¬ No. 17 of 2003.