Govt Projects 2014 Budget Deficit To Reach Rp154.2 Tln

Jakarta, Aug 16 (Antara) - The government has projected a deficit in the 2014 state budget to reach Rp154.2 trillion or 1.49 percent of the gross domestic product (GDP). "We want the draft 2014 state budget to remain expansive, with a budget deficit expected to reach Rp154.2 trillion or 1.49 percent of the GDP," President Susilo Bambang Yudhoyono said when delivering the draft 2014 state budget and financial notes to the House of Representatives here on Friday. Under the draft 2014 state budget, state revenues and state expenditures are projected to reach Rp1,662.5 trillion and Rp1,816.7 trillion respectively. The President said the deficit in the draft 2014 state budget is lower than the deficit target of 2.28 percent in the revised 2013 state budget. "The decline in budget deficit is necessary to create sound and balanced state budget in the upcoming years," he said. The move is part of the strategy to maintain fiscal sustainability by constantly opening room for expansion to boost sustainable economic growth, he said. "As head of government who, God willing, will end term of office at the end of October next year, I don`t want to burden my successor," he said. To finance the budget deficit, the government will use domestic and foreign financing sources by putting emphasis on sustainable financing and maintaining minimum fiscal risk, he said. "The main domestic financing source will come from state debt securities and the foreign financing sources will come from offshore loans including program loans and project loans," he said.