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House approves 2017 revised budget
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Finance Minister Sri Mulyani Indrawati (Antara/Puspa Perwitasari)
T
he House of Representatives approved the revised 2017 state budget at a plenary session on Thursday after the budget committee completed deliberating the budget bill on Wednesday.
Of 10 factions in the House, only the Gerindra Party stood in opposition of the bill, arguing that there was uncertainty surrounding an agreement made late last year to cut the state budget to Rp 2.07 quadrillion from Rp 2.11 quadrillion.
But the nine remaining factions agreed to approve the revised budget, which includes an increase of the deficit assumption to 2.92 percent of the country’s gross domestic product (GDP) from 2.41 percent in 2016.
Following the approval by the House, Finance Minister Sri Mulyani Indrawati expressed gratitude toward Commission XI overseeing financial affairs and the budget committee for completing the deliberation process within a limited time frame.
Read also: Revised budget bill ready for approval"We truly thank the commission and the budget committee for approving the revised budget bill despite having had limited time," Sri Mulyani said.
The minister expressed optimism over achieving the tax revenue target, citing the country's tax revenue collection, which increased by 9.6 percent year-on-year (yoy) in the first half, compared to 2.5 percent yoy growth in the same period last year.
The budget deficit for the first half could be kept at 1.29 percent of the GDP, much lower than 1.82 percent of the GDP last year, he said, adding that, by the end of the year, the budget deficit would be lower than the target of 2.92 percent of the GDP.
In the bill, economic growth is assumed at 5.2 percent, inflation at 4.3 percent, oil price at US$48 per barrel, oil and gas lifting stayed at 815,000 barrels and 1.15 million barrel oil equivalent, respectively, the rupiah's exchange rate at Rp 13,400 to the US dollar, a three-month treasury bill annual rate of 5.2 percent and budget deficit at 2.92 percent of gross domestic product (GDP).
Other figures in the bill are:
* Total government revenue Rp 1.74 quadrillion
* Total government spending Rp 2.13 quadrillion
* Budget deficit Rp 397.2 trillion
Figures in original budget:
* Total government revenue Rp 1.75 quadrillion
* Total government spending Rp 2.08 quadrillion
* Budget deficit Rp 330.20 trillion (bbn)
