Kontan Online

MACROECONOMICS

Don't worry about government debt: Sri Mulyani

Thursday, 03 August 2017 | Wahyu Tri Rahmawati

JAKARTA. Finance Minister Sri Mulyani Indrawati has told the public not to worry about the government debt and state budget deficit because they are in secured condition.

"People only see the nominal," said Sri Mulyani in Jakarta on Tuesday, adding that many factors should be considered when assessing the government debt and state budget deficit.

As reported previously the government debt was recorded at Rp 3.67 quadrillion (US$275.09 billion) in the first half of 2017 and the state budget deficit was assumed to be at Rp 397.20 trillion or 2.93 percent of gross domestic product (GDP) by the end of this year.

She believed the state budget deficit would reach only about 2.67 percent by the end of 2017 after considering spending in government institutions, which were usually at between 95 and 97 percent of their respective allocations.  

Speaking about the government debt, Sri Mulyani stressed that it could not be compared with the situation in 2010 when she was also the finance minister under then president Susilo Bambang Yudhoyono.

She stressed that at that time the state budget was recorded at Rp 900 trillion, while this year, the state budget reached Rp 2 quadrillion.

Reporter: Wahyu Tri Rahmawati
Editor: Wahyu Rahmawati