Indonesias budget deficit falls to Rp55.1 trillion as of April

Jakarta, (ANTARA News) – Indonesias budget deficit fell to Rp55.1 trillion as of April 2018 from Rp72.2 trillion a year earlier, the Finance Minister, Sri Mulyani, said here on Friday.

The 2018 state budget was far stronger than that of last year, she said at a meeting with a number of financial institutions and analysts at the Taxation Directorate General Headquarters. The government claimed that it had greater fiscal room to protect the national economy from external upheavals.

“Until April 30, the realisation of the 2018 state budget is very positive. The budget deficit stood at Rp55.1 trillion, well below the budget deficit in the same period last year at Rp72.2 trillion,” she said.

In fact, the primary balance recorded a surplus of Rp12.2 trillion, well above last years figure of Rp3.7 trillion, she said.

“So our first-quarter state budget is very good. Tax receipts also saw healthy growth until April. We have collected Rp416.9 trillion. The tax receipts would grow 11.2 per cent if we include income from tax amnesty. But if we exclude income from tax amnesty, the growth of tax receipts will come close to 15 per cent. This is very positive,” she said.

Value-added tax and income tax in the non-oil/non-gas sector would contribute 4.1 per cent and 17.3 per cent of the tax receipts respectively if income from tax amnesty was not included, she said.

In addition, non-tax state revenues from natural resources and excise receipts also increased compared to last year.

“Hence, we are optimistic that we will be able to create a credible, stable, sustainable and sound state budget in 2018,” she said.

Expenditures from all ministries and non-ministerial government institutions also increased, thus contributing to the first-quarter economic growth, she said.

“We hope that we will be able to maintain the momentum of expenditures until the end of 2018,” she added.

Source: ANTARA News