Govt to Increase Foreign Debts
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - The government is planning to increase the allocation of its foreign debt into up to Rp67 trillion in order to cover the financial deficit. The deficit is expected to get bigger in the 2017 revised State Budget.
It added that the issuance of state bonds would be the government’s main choice to get funding.
Coordinating Minister for Economic Affairs Darmin Nasution said that if the spending budget of ministries and institutions are absorbed to the full, the deficit will reach 2.92 percent.
Read: Govt Cuts Spending as Deficit Widens
However, he added, if the absorption is only 96 percent like in the previous years, the deficit is predicted to only reach 2.67 percent.
Therefore, the minister added that the need for debts has increased by Rp33 trillion (if the deficit is 2.67 percent) to Rp67 trillion (if the deficit is 2.92 percent).
The budget deficit is expected to increase as the government needs to allocate more for priority projects at the end of this year among others for land certification, preparation of regional elections, the Asian Games, and other projects.
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