Strong receipts strategy needed to narrow budget deficit

Nusa Dua, Bali (ANTARA News) – A strategy of strong tax receipts is needed to narrow budget deficit, Director General of Budget at the Finance Ministry Askolani said.

“Sound state budget needs a strategy of strong receipts,” he said at a media gathering in Nusa Dua resort area in Bali province on Wednesday.

Tax receipts which make up 80 percent of the state budget served as a source of income in the state budget and that the tax receipts need to be strengthened to support financing and offset budget deficit, he said.

With good tax receipts, the government will no longer rely on loans and will be able to maintain the quality of state deficit, he said.

“The state budget will increasingly become stronger with small deficit because the primary equilibrium will also increasingly become smaller. This means that we can reduce debts and will be stronger than the fiscal aspect,” he said.

The government has made the efforts after it stopped selling state debentures in December for financing in the 2018 budget year, he said.

The management of the state budget which has been on the right track with budget deficit staying within the range of 1.6 percent of the gross domestic product should be maintained and become capital to realize the state budget in 2019, he said.

“This may become capital for 2019. With this optimism, the economy will continue to pick up. Taxes will be collected well and the volume of spending will increase. This means that the construction activities will not be reduced,” he said.

Source: ANTARA News