Infrastructure Budget Not To Be Cut

Jakarta, May 14 (ANTARA) - Chief economic minister Hatta Rajasa said capital spending for infrastructure development would not be cut for 2013 budget revision. "Budget for projects to which commitment has been made certainly cannot be cut such as those in infrastructure projects. We will avoid cutting it," he said here on Tuesday. He said the government would cut non-binding spending at ministries to reduce budget deficit which is estimated to reach 2.5 percent of the GDP. "We will cancel routine expenditures which are non-binding such as for building construction, official travels and non-binding goods purchases. We can save here and we will do it," he said. Hatta said he hoped the cuts could offset less tax revenue this year which could happen as global economic conditions have not yet fully recovered. "Tax income will certainly drop as external situation also affects income of state-owned and private companies," he said. According to plans the government would cut expenditures at ministries by Rp27 to Rp30 trillion to anticipate overspending and reduction in state income. He hoped the 2014 budget would be better so that the deficit could be maintained and the government would have adequate funds to finance infrastructure development. For this year, he said, the focus would be put on better management of energy subsidy so that it would meet better targets and reduce excesses to make the use of the 2013 budget more effective. "Actually there is no big room for us to move to cover the deficit this year but next year there will be space for it to speed up infrastructure development," he said.