Year-end budget deficit 2.3 percent: Minister

JAKARTA. Finance Minister Chatib Basri has said Indonesia’s budget deficit at the end of this year is estimated to reach 2.3 percent of gross domestic product (GDP), which is still lower than the budget deficit target of Rp 224.2 trillion (US$22.6 billion) or 2.38 percent of GDP as stipulated in the 2013 revised state budget (APBN-P).

“The budget deficit at the end of this year is predicted to stand between 2.1 percent and 2.3 percent,” he said in Jakarta on Friday, as quoted by Antara news agency.

Chatib said the predicted deficit had taken into consideration both the realization of tax revenues, which were likely to reach only 90 percent at the end of this year, and financing realization that would possibly fail to reach 100 percent.

 “The realization of tax revenues will be a ‘shortfall’ compared to last year, but it won’t be significant. With a 2.3 percent deficit, financing needs will become smaller,” said Chatib.

According to data from the Finance Ministry, as of Oct. 31, the realized new tax revenues amounted to Rp 839 trillion or 73.1 percent of the total target of Rp 1,148.4 trillion. Meanwhile, non-tax revenues reached Rp 257.7 trillion or 73.8 percent of a total of Rp 349.2 trillion targeted.

Realized central government spending reached Rp 808.7 trillion or 67.6 percent of a total Rp 1,196.8 trillion targeted, while regional transfers amounted to Rp 429.3 trillion or 81.1 percent of the target of Rp 529.4 trillion. (The Jakarta Post)