Projected 2.19 percent deficit aimed at creating sound state budget

Jakarta (ANTARA News) – The projected deficit of 2.19 percent of the gross domestic product (GDP) in the draft 2018 state budget is the governments target to create an increasingly sound state budget, Finance Minister Sri Mulyani Indrawati stated.

“This reflects the aspiration to create an increasingly sound state budget, yet it can fully carry out the functions of stability, allocation, and distribution,” she noted at a press briefing here on Monday.

The policy to slash the assumed budget deficit is also aimed at settling the issue of debts and primary balance, so that it will not increasingly burden the state budget, she remarked.

“With a lower budget deficit, we will be able to solve the issue of debts. Admittedly, we cannot stop it suddenly. The primary balance will still exist, but it will be half as compared to that in 2017,” she explained.

The target of the budget deficit, which is lower than that in 2016 and 2017, is expected to send a positive signal to the public that the trend of financing has increasingly become better, she pointed out.

“This suggests that we are very cautious to design it to enable Indonesia to avoid a debt crisis, which currently affects many developed countries,” she added.

The budget deficit was recorded at 2.49 percent of the GDP in 2016 and at 2.67 percent of the GDP in 2017.

Source: Antara News