Jakarta (VNA) – Indonesia’s Finance Ministry has announced that the country’s state budget deficit increased to 281.9 trillion Rp (20.1 billion USD) or 1.8 percent of the gross domestic product (GDP) in October 2019, higher than the same period year earlier of 229.7 trillion Rp or 1.56 percent of GDP.
Speaking at a press conference on November 18, Minister of Finance Sri Mulyani Indrawati said the government forecast a budget deficit of 296 trillion Rp or 2.26 percent of GDP at the end of the year due to unsatisfactory revenue from several sectors such as manufacturing and mining.
By the end of October, state revenue was recorded at 1.508.9 trillion Rp or 69.7 percent of the target. The country’s income was recorded to only growing 1.2 percent year-on-year (YoY), lower than the growth in October 2018 which reached 21.3 percent (YoY).
Total tax revenue from January to October was recorded at 1,173.9 trillion Rp, hitting 65.7 percent of the target. Non-tax state revenue was at 333.3 trillion Rp, or 88.1 percent of the target.
According to Indrawati, the sluggish tax and non-tax revenue due to the realization of macro assumptions that are not in line with the estimates. The minister gave an example of the realization of Indonesian oil prices which are still at 62 USD a barrel, while the macro assumption is at 70 USD a barrel.
Then oil output at the beginning of the year averaged at 744,000 barrels a day, assuming 775,000 barrels a day. While the average exchange rate of the rupiah against the US dollar since the beginning of the year is at 14,162 Rp, assuming that in the 2019 State Budget it is 15,000 Rp.
With lifting under the assumption, oil prices and the exchange rate will certainly affect tax and non-tax revenues which are definitely lower, she said.
Furthermore, the total state expenditure until the end of October grew by 4.5 percent (YoY) with a realization of 1.798 trillion Rp or 73.1 percent of the target. Central government expenditure was recorded at 1,121.1 trillion Rp (68.6 percent) and transfers to the regions were 676.9 trillion Rp (81.9 percent)./.
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