Tax collection this year, negatively affected by external pressures, was projected to be short of the target set in the 2019 state budget, contributing to a wider-than-expected fiscal deficit by the end of the year, Finance Minister Sri Mulyani Indrawati said.

The government projected its budget deficit to reach Rp 310.8 trillion (US$22.28 billion) this year, equal to 1.93 percent to gross domestic product (GDP), slightly higher than the Rp 296 trillion deficit targeted in the 2019 state budget, which would have been 1.84 percent of GDP.

“It [the deficit] will be slightly higher than targeted, although the deviation is not too large,” said Sri Mulyani in Jakarta on Tuesday. “This was caused by a sluggish trend in state revenues amid pressures on the economy.”

Sri Mulyani said the tax and customs authorities would always try to seek a balance between maintaining the positive momentum in the economy, conducting enforcement measures and ensuring the compliance of economic agents.

She said authorities would make sure that enforcement measures were taken based on credible data, therefore assuring fair treatment of the business communities.

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