ID :
35204
Thu, 12/11/2008 - 19:20
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https://www.oananews.org//node/35204
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NO BUDGET CUTS IN FACE OF CRISIS: FINANCE MINISTER
Jakarta, Dec 11 (ANTARA) - The government will not cut its expenditure budget in the face of the impact of the global financial crisis, Finance Minister Sri Mulyani Indrawati said.
"We are not going to cut the budget as we did last year. Cuts in spending will only be made as a last resort," the finance minister said here on Thursday.
She said budget cuts or changing the budgets of ministries / government institutions and the regions would only disturb the absorption of budgets in general.
"We fear that budget cuts will slow budget spending as has happened so far. So, unless absolutely necessary, we will not cut the budget," she added.
The minister said that new and effective programs were really needed to prevent layoffs, or to create new job opportunities for laid off or new workers whose number continued to increase annually by about two million.
Mulyani said that the 2009 budget included various programs designed to anticipate layoffs, such as the smallholder's credit scheme (KUR) and the national program for people's empowerment (PNPM).
"Workers' layoffs are likely to happen. So, we have included KUR and PNPM programs in the state budget. We hope it will at least help if layoffs take place or create new job opportunities," the minister said.
She admitted that the inclusion of priority programs in the state budget for 2009 could cause a bigger deficit in the 2009 budget than those in 2008.
"From the receipt aspect, if the economic activities decline, the revenue target could also decline and thus it will automatically generate bigger deficit," she said.
The minister said the funds to plug the deficit could be obtained from any sources as long as the sources were safe and the funds were really needed for the development of economy.
She said that in setting the amount of deficit for economic expansion the government should also take into account the capability of the economic activities to absorb them.
Citing an example, the minister mentioned the deficit in the revised 2008 budget which was set at 2.1 percent of Gross Domestic Product but its realization was predicted to be one percent only.
"We are not going to cut the budget as we did last year. Cuts in spending will only be made as a last resort," the finance minister said here on Thursday.
She said budget cuts or changing the budgets of ministries / government institutions and the regions would only disturb the absorption of budgets in general.
"We fear that budget cuts will slow budget spending as has happened so far. So, unless absolutely necessary, we will not cut the budget," she added.
The minister said that new and effective programs were really needed to prevent layoffs, or to create new job opportunities for laid off or new workers whose number continued to increase annually by about two million.
Mulyani said that the 2009 budget included various programs designed to anticipate layoffs, such as the smallholder's credit scheme (KUR) and the national program for people's empowerment (PNPM).
"Workers' layoffs are likely to happen. So, we have included KUR and PNPM programs in the state budget. We hope it will at least help if layoffs take place or create new job opportunities," the minister said.
She admitted that the inclusion of priority programs in the state budget for 2009 could cause a bigger deficit in the 2009 budget than those in 2008.
"From the receipt aspect, if the economic activities decline, the revenue target could also decline and thus it will automatically generate bigger deficit," she said.
The minister said the funds to plug the deficit could be obtained from any sources as long as the sources were safe and the funds were really needed for the development of economy.
She said that in setting the amount of deficit for economic expansion the government should also take into account the capability of the economic activities to absorb them.
Citing an example, the minister mentioned the deficit in the revised 2008 budget which was set at 2.1 percent of Gross Domestic Product but its realization was predicted to be one percent only.
