Govt to Allocate Rp823 Trillion for Ministries, Agencies in 2019
Date 9 April 2018
The Government hopes to lower the deficit figures less than 2 percent of the countrys Gross Domestic Product (GDP) in the next draft 2019 State Budget, with assumption that next year’s GDP will rise considerably above Rp16,000 trillion.
This was conveyed by Minister of Finance Sri Mulyani Indrawati to the journalist after Plenary Cabinet Meeting on the 2018 Availability of Budget and Indicative Ceiling, and National Priorities in 2019 at the State Palace, Jakarta, Monday (9/4).
So we have to carefully set tax ratio and deficit targets of taxes, Sri Mulyani said.
The Government, the Minister added, will also try to design the draft 2019 State Budget which continues to provide stimulus and support for the economy and social improvements but does not create too large burden that creates an effect to perception and credibility of the State Budget.
Therefore, the Minister said that the Governments target in 2019 is that total state revenues will grow by 7.6 percent to 13 percent, while from the country expenditure side, the Central Governments spending will rise by 7.3 percent, and as for regional budgets including for Village Fund transfers, it will be set to increase by about 8.3 percent.
It’s all still within the indicative budget ceiling. For ministries/agencies, we will spend more than Rp823 trillion, if I am not mistaken. We will focus on the programs set as priorities by the President, such as education, health, vocational and social programs, Sri Mulyani said.
In the meantime, for infrastructure allocation especially for ministries such as Ministry of Public Works and Public Housing and Ministry of Transportation, Sri Mulyani said that the allocation will remain at a relatively constant level.
However, those ministries, she said will now conduct various initiatives through Business Competition Supervisory Commission (KPPU) so that the budget for capital expenditure will continue to rise, while the fiscal space will be used more on social and educational spending.
Regarding energy subsidies, Sri Mulyani said that the Indonesian Crude Price (ICP) assumption will be increased and adjusted to the realization this year.
She also mentioned there are still about four months away from now until July or August when the President submits a Financial Note that will be delivered in a speech.
So we will see the development of ICP, but the possibility of the figure will be over 50, i.e. by 58 dollars to 65 US dollars, the Minister concluded. (FID/ES) (GWH/EP/Naster)