ID :
19418
Sat, 09/13/2008 - 23:56
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https://www.oananews.org//node/19418
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DEFICIT IN 2008 STATE BUDGET ESTIMATED AT MINUS 1.9 PCT
Jakarta, Sept 13 (ANTARA) - The government estimates the deficit in the 2008 state budget will be lower than 1.9 percent of the country's gross domestic product (GDP) due in part to a recent drop in global crude prices.
"The drop in global crude prices coupled with a rise in the rupiah's exchange rate will have a good impact on state revenues in rupiah," Finance Minister Sri Mulyani Indrawati said here on Friday night.
She said the drop in global crude prices would have a positive impact on the state budget in that it would reduce the country's oil subsidy.
"So the 2008 state budget deficit will possibly not be as high as 2.1 percent or 1.9 percent (of GDP)," she said.
The minister said the drop in global crude prices and the rise in state receipts in rupiah laid a basis for the 2008 state budget to remain secure until the end of this year.
"With the higher state receipts in rupiah, the Directorate General of Debt Managment does not need to issue state debentures in larger amounts," she said.
In the revised 2008 state budget, the government had set the budget deficit at 2.1 percent of GDP or Rp94.3 trillion with state expenditures estimated at Rp989.3 trillion and state revenues and grants at Rp895 trillion.
The revised 2008 state budget also set the assumed economic growth rate at 6.4 percent, on-year inflation rate at 6.5 percent, interest on Bank Indonesia short-term promissory notes for three-month deposits at 7.5 percent, the rupiah's exchange rate against the dollar at Rp9,100, oil price at US$95 per barrel and oil production at 927,000 barrels per day.
But in its midyearly report delivered to the House of Representatives (DPR), the government projected the 2008 budget deficit at 1.9 percent of GDP or Rp90.55 trillion with state expenditures estimated at Rp1,097.60 trillion and state revenues and grants at Rp1,007.05 trillion.
"The drop in global crude prices coupled with a rise in the rupiah's exchange rate will have a good impact on state revenues in rupiah," Finance Minister Sri Mulyani Indrawati said here on Friday night.
She said the drop in global crude prices would have a positive impact on the state budget in that it would reduce the country's oil subsidy.
"So the 2008 state budget deficit will possibly not be as high as 2.1 percent or 1.9 percent (of GDP)," she said.
The minister said the drop in global crude prices and the rise in state receipts in rupiah laid a basis for the 2008 state budget to remain secure until the end of this year.
"With the higher state receipts in rupiah, the Directorate General of Debt Managment does not need to issue state debentures in larger amounts," she said.
In the revised 2008 state budget, the government had set the budget deficit at 2.1 percent of GDP or Rp94.3 trillion with state expenditures estimated at Rp989.3 trillion and state revenues and grants at Rp895 trillion.
The revised 2008 state budget also set the assumed economic growth rate at 6.4 percent, on-year inflation rate at 6.5 percent, interest on Bank Indonesia short-term promissory notes for three-month deposits at 7.5 percent, the rupiah's exchange rate against the dollar at Rp9,100, oil price at US$95 per barrel and oil production at 927,000 barrels per day.
But in its midyearly report delivered to the House of Representatives (DPR), the government projected the 2008 budget deficit at 1.9 percent of GDP or Rp90.55 trillion with state expenditures estimated at Rp1,097.60 trillion and state revenues and grants at Rp1,007.05 trillion.
