Govt sets 2010 budget deficit at 1.6 percent

The government has set the 2010 budget deficit target at Rp 98 trillion or 1.6 percent of the gross domestic product, which is Rp 35 trillion lower than the planned 2009 revised budget.

A note read by President Susilo Bambang Yudhoyono before the House of Representatives on Monday, stated that next year's state income will reach Rp 911.5 trillion, while the expenses will stay at Rp 1,009 trillion.

Kompas.com reported the President said that the economy would grow 5 percent and inflation would hover around 5 percent.

The rupiah would remain stable at Rp 10,000 against the U.S. dollar, Bank Indonesia certificate interest rate would be set at 6.5 percent, oil prices are expected to reach $60 a barrel, and the country's oil production will stay at 965,000 barrel a day.