TEMPO.CO, Jakarta - The deficit target set in the financial deficit in the 2017 Amended State Budget is almost at its limit. That's why the government has widened the deficit space by 2.92 percent from the State Budget benchmark of 2.41 percent.
Coordinating Minister for the Economy Darmin Nasution said that expanding the deficit threshold is allowed by law, by as much as 3.0 percent, in the absence of spending savings.
"However, with the savings done by ministries and state agencies in terms of spending, the Special Allocation Funds cut, and Village Funds' cut, the deficit will be 2.67 percent against the gross domestic product," said in Jakarta yesterday, July 6.
The average spending of ministries and institutions is between 96 and 97 percent. With said projection, the government will immediately use the expenditure allocation of Rp16 trillion for priority spending and debt interest payments.
The government also lowered its domestic revenue target by Rp36.1 trillion, based on a projected tax revenue decline by Rp47.9 trillion from the targeted Rp1,498.9 trillion.
To patch deficit, the Finance Ministry will issue Government Securities (SBN).
Finance Minister Sri Mulyani Indrawati is optimistic that the budget deficit will only be 2.67 percent, which she says is appropriate for ministries' and agencies 95-percent budget absorption rate.
Meanwhile, the Tax Directorate General is targeting to boost tax income in the second half. Fromm the non-oil sectors, the DG is targeting a shortfall income of up to Rp45 trillion.
PUTRI ADITYOWATI
