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Govt, House set this year's budget deficit at 2.35% GDP
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The House of Representatives budget committee meets in Jakarta last week. (thejakartapost.com/Sepsha Dewi R.)
T
he government and the House of Representatives have set the budget deficit at 2.35 percent of gross domestic product (GDP) in the revised 2016 state budget, lower than the government’s initial prediction of 2.48 percent GDP in the draft budget.
House budget committee vice chairman Said Abdullah said the 2.35 percent deficit target would ensure the state budget was credible and the financing gap was not widened.
"The budget deficit, which was previously proposed at 2.48 percent of GDP, must be cut to 2.35 percent so that the government will be more credible," he said at the House complex in Jakarta on Monday.
Finance Ministry head of fiscal policy Suahasil Nazara said the government would adjust the budget allocation to meet the lower deficit target and would submit the adjusted figure at the budget meeting on Tuesday.
"Expenditure is likely to be adjusted. The House has asked us to focus on urgent and prioritized budget allocations," he said.
Previously, the government set the assumption of Indonesian crude price (ICP) at US$40 per barrel, higher than the ICP assumption proposed by the government at $35. (ags)
