Finance Minister Sri Mulyani Indrawati has revealed on Tuesday that last year's state budget recorded a deficit of Rp 269.4 trillion, or 1.81 percent of gross domestic product (GDP), far lower than the 3 percent threshold stipulated in the law.
The deficit was also lower than the 2.19 percent that was estimated in the indicative budget, adding that it was the lowest deficit since 2012.
“The 2018 budget deficit is in a safe range,” Sri Mulyani said on Tuesday as quoted by Antara. She was speaking at a House of Representatives plenary session for the government to approve the 2018 state budget revenue and spending.
The minister said that the low deficit also indicated that the 2018 state budget was managed well as a fiscal policy instrument and used optimally to maintain fiscal sustainability.
Sri Mulyani said that the deficit was covered by financing mostly from local sources (Rp 302.7 trillion), with Rp 3.2 trillion from foreign sources. The 2018 state budget thus had Rp 36.2 trillion in unspent funds (SiLPA). (bbn)