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Government, House update state budget bill
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Finance Minister Sri Mulyani Indrawati speaks to reporter after attending a hearing with the House of Representatives budget committee. (AP Photo/Tatan Syuflana)
T
he government and a House of Representatives’ working unit has updated the 2018 state budget bill based on a new exchange rate assumption and more allocations for ministries and other institutions.
Finance Minister Sri Mulyani Indrawati said on Wednesday that the new exchange rate assumption was Rp 13,400 per US dollar compared to Rp 13,500 per dollar in the initial budget.
The change was based on strong economic conditions in 2017 as indicated by low inflation, stable exchange rate and positive balance of payment, she said.
She also assured that the US Federal Reserve’s plan to raise its rate in December would not significantly affect the rupiah exchange rate and that any effects would be temporary.
"The average exchange rate from Jan. 1, to Oct. 3 is Rp 13,355 per dollar. Even after the Fed's announcement, we can keep the exchange rate stable," she said during a meeting with the House’s budgetary committee in Jakarta.
Sri Mulyani said the government's revenue posture had increased 0.87 percent to Rp 1.89 quadrillion (US$140.3 billion) because of the expected economic recovery next year that would lead to higher tax revenue.
On the expenditure side, the government plans to increase spending by 0.74 percent to Rp 2.22 quadrillion. Allocations for ministries and institutions will increase 3.13 percent to finish strategic projects.
The government, however, has lowered subsidies. "The energy subsidies are lower because we can buy less expensive fuel," she continued. (bbn)
