Finance Minister: Deficit in First Semester of 2018 State Budget Hits a Four-Year Low

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 9 Juli 2018
Category: News
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Finance Minister Sri Mulyani delivers a press statement at the Bogor Presidential Palace, West Java, Monday (9/7). (Photo by: Rahmat/Public Relations Division)

Finance Minister Sri Mulyani delivers a press statement at the Bogor Presidential Palace, West Java, Monday (9/7). (Photo by: Rahmat/Public Relations Division)

Minister of Finance Sri Mulyani Indrawati said that the current deficit in the first semester of the 2018 State Budget is Rp110 trillion or the lowest in the last four years. For the record, last year’s deficit was Rp175 trillion.

“This is proof that the Government continues to make sound and credible State Budget, and considering it is mainly associated with debt issues and debt management,” Sri told reporters after a Limited Meeting at the Bogor Presidential Palace, West Java, Monday (9/7).

Sri went on to explain that the result once again reaffirmed that the Government is very cautious and prudent in maintaining the 2018 State Budget.

Sri also added that with our relatively maintained State Budget posture, the Government will keep the State Budget with a deficit lower than planned. “Deficit for 2018 is set to 2.19 percent of GDP. However, based on the current outlook perspective, we estimate the 2018 State Budget will deficit to only 2.12 percent of GDP or Rp314 trillion, smaller than the previously estimated Rp325 trillion,” Sri explained.

Given the State Budget posture is quite good and does not have a big deviation in terms of total state revenues and the amount of state expenditure and deficit are smaller than planned, the President said that no revision is needed for the 2018 State Budget.

“We will report this and discuss it next week with the House of Representatives,” Sri said.

According to Sri, with sound State Budget, the Government will adopt this fiscal instrument to maintain the economy, mainly when global economic conditions are facing uncertainties.

“Minister of Industry said that we continue to take various efforts, be it in the form of providing incentives or supports. Thus, business players can still seize the opportunity to boost exports, manage imports so as not to increase pressure on our external balance,” Sri said adding that together with the monetary authorities and the Financial Services Authority (OJK), we can keep the economy stable and sustainable in the face of global turmoil. (GUN/ES) (MUR/EP/YM/Naster).

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