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Govt seeks Rp 467.3t deficit increase for infrastructure development
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Motorcyclists drive past an overpass being constructed in Palembang, South Sumatra. The government is proposing development financing through a deficit increase. (Antara/Feny Selly)
T
he government is seeking to increase the budget deficit by Rp 467.3 trillion (US$34.91 billion) for development financing this year, as shown in the draft of the 2017 Revised State Budget under discussion by government officials and the House of Representatives.
Coordinating Economic Minister Darmin Nasution said the deficit increase was needed by the government for infrastructure development.
“We lag behind other countries. If we do not develop [the infrastructure], we can never approach their levels. We will be far behind them,” said Darmin in response to a question from members of House Commission XI overseeing financial affairs during a hearing on Monday as reported by tempo.co
(Read also: Minister: Rp 3.67q government debt no cause for concern)
Previously, Finance Minister Sri Mulyani said government debt had reached Rp 3.67 quadrillion (US$274.23 billion) in April. She stressed that government debt was at a safe level, as it was below 30 percent of gross domestic product (GDP).
When President Joko “Jokowi” Widodo took office in 2014, government debt was Rp 2.60 quadrillion, meaning that during the three years he has been in office, government debt has increased by Rp 1.07 quadrillion.
Darmin stressed that the deficit increase would be used to finance productive activities as stipulated in the draft revision of the state budget. He added that the National Development Planning Agency (Bappenas) had also encouraged infrastructure development through an investment scheme. (bbn)
