GOVT MULLING OPTIMIZING FUNDS FOR STATE BUDGET DEFICIT

Jakarta, Sept 24 (ANTARA) - The government is proposing to the House that the funds obtained from optimizing efficiency worth Rp8.7 trillion should be used to finance the 2009 state budget deficit so that the deficit could be reduced to less than 1.7 percent of the gross domestic product (GDP).

"Minister for National Development Planing/Chairman of National Development Planning Board (Bappenas), Paskah Suzetta gave us a good input that the Rp8.7 trillion in efficiency optimizing funds should be used to finance the deficit," Finance Minister Sri Mulyani Indrawati said here on Wednesday.

The minister made the remarks in a working meeting with the Budgetary Committee of the House of Representatives (DPR) which was led by its chairman Emir Moeis.

The meeting was also attended by Bank Indonesia (BI) Governor Budiono.

The working meeting of the Budgetary Committee previously decided to allocate the funds for additional state expenditure.

In the 2009 state budget, funds obtained from optimizing revenues and economizing nett expenditure amounted to Rp20 trillion.

Of the Rp20 trillion, Rp9 trillion will be used to reduce the issuance of state promissory notes (SBN) and Rp11 trillion will be used for additional state expenditure, which consists of Rp8.7 trillion additional rupiah expenditure.

It is the amount of Rp8.7 trillion which is being proposed for financing the 2009 state budget deficit.