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Jakarta Post

Indonesia records 1.49 percent budget deficit as of May

  • Ayomi Amindoni
    Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Fri, June 10, 2016   /  07:34 pm
Indonesia records 1.49 percent budget deficit as of May President Joko Widodo and Vice President Jusuf Kalla lead a plenary meeting on the 2016 state budget at the Presidential Office in Jakarta on Nov. 2, 2015. (the jakarta post/Wienda Parwitasari)

The government has raised Rp 496.6 trillion (US$37.35 billion) in state revenues as of May 31 with Rp 685.8 trillion in spending, pushing the state deficit to Rp 189.1 trillion, or 1.49 percent of gross domestic product (GDP).

Finance Ministry spokesman Luky Alfirman said the state revenues as of May equaled 27.2 percent of the target set in the 2016 state budget at Rp 1,822.5 trillion. Meanwhile, the realization of government spending was 32.7 percent of the Rp 2,095.7 trillion budget ceiling in 2016.

"Based on revenues and spending until May 2016, the state budget deficit reached Rp 189.1 trillion, or 1.49 percent of GDP," Lucky said at a press conference in Jakarta on Friday.

He further said tax revenues had reached Rp406.9 trillion in that period, slightly lower than the same period of 2015, which stood at Rp 435.3 trillion. However, in May alone, tax revenues reached Rp 86.4 trillion, bigger than in May 2015, which stood at Rp 80.7 trillion.

According to Luky, the positive growth in tax revenues in May 2016 indicates a positive macroeconomic condition amid increased government spending. "Tax revenues are expected to increase further starting from June to December," he went on to say.

On the opposite end, government spending reached Rp 357.4 trillion, higher than the same period of last year at Rp 330.2 trillion. (ags)

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