Indonesia raises budget deficit to 2.2 percent of GDP

The Indonesian government has expanded the budget deficit to 2.2 percent of the gross domestic products (GDP) followed the potential short fall on tax revenues around 200 trillion Rp (14.29 billion USD).

Indonesian Deputy Minister of Finance Suahasil Nazara (Source: https://theinsiderstories.com/)


Jakarta (VNA)
– The Indonesian government has expanded the budget deficitto 2.2 percent of the gross domestic products (GDP) followed the potentialshort fall on tax revenues around 200 trillion Rp (14.29 billion USD).

Initially,in the 2019 State Budget, Indonesia targeted the budget deficit at 1.84 percentof GDP.

Basedon 2019 State Budget data, the government targeted to raise tax revenues to 1,557.5trillion Rp. But, until October the realization of the tax revenues recordedaround 1,000 trillion Rp.

Talkingwith the press, Deputy Minister of Finance Suahasil Nazara blamed theuncertain global economic conditions as the reasoned the tax revenues lower that this year target. 

Tofinance the deficit, the government will release more government bonds to themarket and implement budget efficiency, he said.

“Thisneeds to be done because we want our economic growth to remain at a minimumlevel at 5 percent,” he added./.

VNA

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