State Budget Still Relevant to Nations Needs: Minister

Jakarta (ANTARA News) – The 2018 state budget is still relevant to the nations needs and does not need a revision, according to Finance Minister Sri Mulyani Indrawati.

“As state revenues and expenditures are still relevant, we come to the conclusion that it has reflected the needs to realize the state economy in 2018,” she remarked here on Wednesday.

The minister clarified that state revenues are still well maintained and are projected to reach the year-end target set in the 2018 state budget.

The state revenues were mostly derived from tax receipts, reaching 40 percent of the first-semester target and non-tax state revenues supported by high global crude prices, she stated.

“The total amount of taxes and non-tax state revenues is relevant to the state revenue forecast for this year,” she noted.

The minister explained that state spending requirements, including additional accommodation budget for urgent needs and the 2018 Asian Games are also still relevant to the plan.

“We are still able to maintain all postures of the 2018 state budget properly. All the planned spending needs in 2018 continue to be met,” she emphasized.

Several macro assumptions in the 2018 state budget, including the Indonesian Crude Price (ICP), rupiahs exchange rate, and oil production, are no longer relevant to their average realization.

The ICP reached US$66 per barrel as of late May 2018, well above its assumption of $48 per barrel.

Nonetheless, the government has decided to not propose a revision in the 2018 state budget, as the global crude price hike has contributed additional income to non-tax state revenues in the oil and gas sector.

The additional income has a positive impact to curb the budget deficit along with sound absorption of the state budget funds.

The government has always proposed a revision in the state budget to the House of Representatives, as macro assumptions fell short of their target in the state budget.

Source: ANTARA News