Govt Tips Well-Contained Deficit, Strong Spending, Moderate Revenue Collection in the New Year

Finance Minister Sri Mulyani Indrawati, center. (Antara Photo/Muhammad Adimaja)

By : Tabita Diela | on 5:50 PM January 01, 2017
Category : Business, Economy, Featured

Jakarta. The Indonesian government is on course to keep its budget deficit in check while maintaining robust spending amid falling revenues due to global economic uncertainties that have hampered tax collection, Finance Minister Sri Mulyani Indrawati said late on Saturday (31/12).

The minister told reporters Indonesia's budget deficit is somewhere between 2.35 percent — as stated in the revised 2016 state budget — and the government's latest projection of 2.7 percent.

The minister previously said the government had shaved off Rp 138 trillion from the Rp 2,083 trillion state budget due to a projected Rp 219 trillion shortfall in tax collection (out of a target of Rp 1,539 trillion).

"The deficit is at a safe level, but we'll make an official announcement later," Suahasil Nazara, head of the fiscal policy office at the Finance Ministry, said separately.

The government has so far spent Rp 1,887 trillion and collected about Rp 1,281 trillion in revenue from taxes, customs and excise fees.

Both figures are around 97 percent of the ministry's own estimations which put spending at Rp 1,945 trillion and taxation revenue at Rp 1,320 trillion.

These figures were announced at 3.00 p.m. on Saturday (31/12), and are still subject to change. The final and official budget realization figures will be revealed by the government on Tuesday week.

According to the latest data available to the public, total government spending had reached Rp 1,636 trillion in November, or 79 percent of the Rp 2,083 trillion targeted in the revised 2016 state budget.

Total revenue collection — which include revenues from taxes, profits from state-owned companies, natural resources and grants — had reached Rp 1,314 trillion or around 74 percent of the targeted Rp 1,786 trillion.

Last year, the government only managed to spend a total of Rp 1,797 trillion or 91 percent of its spending target by Dec. 31. Revenue collection then had reached Rp 1,505 trillion or about 85 percent of the target.

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