ID :
65558
Sat, 06/13/2009 - 08:58
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https://www.oananews.org//node/65558
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INCREASE IN BOND SALES NEEDED TO COVER DEFICIT: MINISTER
INCREASE IN BOND SALES NEEDED TO COVER DEFICIT: MINISTER
Jakarta, June 13 (ANTARA) - The government needs to increase the sales of its bonds and utilize debts to cover state deficit which is expected to rise to 1.7 percent, Minister for National Development Planning Paskah Suzetta said.
"A deficit increase to 1.7 percent is likely to happen if the upward trend of crude oil prices continues in 2010," Suzetta who is also head of the National Development Planning Board (Beppenas) said here on Friday.
He said that in order to cover the deficit there was no other way than selling more bonds or using loans.
In the meantime, Bappenas secretary Syahrial Loetan said although the deficit would increase to 1.7 percent, there would still be enough fiscal rooms for the next government.
"The present government should also have the ethics to provide flexible room for the next government," he said.
He said that if the present government sets a deficit of 2.9 percent of the gross domestic product, the next government would only have room for a 0.1 pct deficit because the law would allow only a deficit of three percent.
Therefore, he said, if the government and the House of Representatives finally approved a deficit of 1.7 percent, there would still be a fiscal room of 1.3 percent for the next government.
Previously, deputy chairman of the budgetary committee of the House of Representatives Harry Azhar Azis said the House and the government had agreed on the size of a deficit for 2009 but for 2010, they had not reached any agreement. A deficit for 2010 should be discussed further after the president delivered his financial note in the House plenary session on August 15, 2009.
House Commission XI for financial affairs and the finance minister have agreed on a deficit of 1.3 percent of the gross domestic product or Rp77.15 trillion. So, if it increases to 1.7 percent it means there is an increase of Rp32.4 trillion
Jakarta, June 13 (ANTARA) - The government needs to increase the sales of its bonds and utilize debts to cover state deficit which is expected to rise to 1.7 percent, Minister for National Development Planning Paskah Suzetta said.
"A deficit increase to 1.7 percent is likely to happen if the upward trend of crude oil prices continues in 2010," Suzetta who is also head of the National Development Planning Board (Beppenas) said here on Friday.
He said that in order to cover the deficit there was no other way than selling more bonds or using loans.
In the meantime, Bappenas secretary Syahrial Loetan said although the deficit would increase to 1.7 percent, there would still be enough fiscal rooms for the next government.
"The present government should also have the ethics to provide flexible room for the next government," he said.
He said that if the present government sets a deficit of 2.9 percent of the gross domestic product, the next government would only have room for a 0.1 pct deficit because the law would allow only a deficit of three percent.
Therefore, he said, if the government and the House of Representatives finally approved a deficit of 1.7 percent, there would still be a fiscal room of 1.3 percent for the next government.
Previously, deputy chairman of the budgetary committee of the House of Representatives Harry Azhar Azis said the House and the government had agreed on the size of a deficit for 2009 but for 2010, they had not reached any agreement. A deficit for 2010 should be discussed further after the president delivered his financial note in the House plenary session on August 15, 2009.
House Commission XI for financial affairs and the finance minister have agreed on a deficit of 1.3 percent of the gross domestic product or Rp77.15 trillion. So, if it increases to 1.7 percent it means there is an increase of Rp32.4 trillion
