Indonesia raises budget deficit to 2.2 percent of GDP

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

Jakarta (VNA) – 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).

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

Based on 2019 State Budget data, the government targeted to raise tax revenues to 1,557.5 trillion Rp. But, until October the realization of the tax revenues recorded around 1,000 trillion Rp.

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

To finance the deficit, the government will release more government bonds to the market and implement budget efficiency, he said.

“This needs to be done because we want our economic growth to remain at a minimum level at 5 percent,” he added./.