Finance Minister Prepares to Withdraw Financing Sources to Anticipate the Increase of Budget Deficit
Date 2 September 2015
In order to implement the provision of Article 19 of Law Number 27 of 2014 on 2015 State Budget amended by Law Number 3 of 2015, Finance Minister Bambang P.S. Brodjonegoro signed Minister of Finance Regulation (PMK) Number 163/PMK.05/2015 on Deficit Estimation which Exceeds 2015 State BudgetDeficit Target and Additional Deficit Financing which Estimated to Exceed the 2015 State Budget.
The amount of the 2015 State Budget Deficit Target as enacted by Law Number 27 of 2014 on 2015 State Budget and as amended by Law Number 3 of 2015 is Rp222,506,897,630,000 (two hundreds twenty two trillion five hundreds six billion eight hundreds ninety seven million and six hundreds thirty thousand rupiah).
According to the Minister of Finance Regulation, the Asset-Liability Management (ALM) Commitee of the Ministry of Finance has calculated the amount of deficit estimation which exceeds 2015 State Budget Deficit Target.
The amount is calculated based on: a. Projection of the development of macro economic assumption; b. Projection of State Revenue; c. Projection of Government expenditure; d. Projection of Budget Financing, so the Article 3 paragraph (2) of Minister of Finance Regulation says.
According to Minister of Finance Regulation, in the case of the amount of deficit estimation which exceeds 2015 State Budget Deficit Target, the estimation additional deficit is funded by additional financing sourced from: The Accumulated Budget Surplus (SAL), standby loan withdrawal, issuance of State Securities (SBN).
In order to finance the additional deficit estimation , the ALM Commitee has chosen and calculated the amount of additional financing sources, so the Article 5 of Minister of Finance Regulation Number 163/PMK.05/2015 says.
Moreover, according to ALM Commitees calculation as mentioned in Article 5, Finance Minister stipulates the amount of Deficit Estimation, which exceeds the 2015 State Budget Deficit Target and Additional Deficit Financing which estimated to exceed the target of 2015 State Budget Deficit in Minister of Finance Regulation.
Minister of Finance Regulation as mentioned above contains: a. Deficit estimation amount which exceeds 2015 State Budget Deficit Target; b. Additional deficit estimation; c. Additional financing amount; and d. Additional financing source.
According to Minister of Finance Regulation, regarding additional financing which fund sourced from the SAL, Director General for Treasury has transfered the fund of SAL from Accumulated Budget Surplus Account to State General Treasury Account in Rupiah.
Regarding additional financing which fund sourced from the widhdrawal of standby loan, Director General of Financing and Risk Management already withdraws the standby loan.
Meanwhile, regarding additional financing which fund sourced from issuance of State Securities, Director General of Financing and Risk Management has issued the State Securities (SBN).
The using of SAL, standby loan withdrawal, and/or issuance of State Securities as additional financing was stipulated and reported in the 2015 Government Financial Report (LKPP), so the Article 10 of Minister of Finance Regulation (PMK) Number 163/PMK.05/2015 says.
The Minister of Finance Regulation is enacted on its enactment date on 24 August 2015 by Law and Human Rights Minister Yasonna H. Laoly. (ES/Humas)(RAS/MM/YM-Naster/Sy)