JAKARTA: A revision of Indonesia’s development budget for this year could widen the deficit up to 2.5 percent of gross domestic product from 2.1 percent earlier, a minister said here on Thursday.
Indonesian Finance Minister Bambang Brodjonegoro disclosed that under the revision that is being drafted the deficit still rises despite the government has cut spending by about 50.6 trillion rupiah (some 3.834 billion U.S. dollars) as there are some other additional spending.
The government will in part meet the gap with new loans, Minister Brodjonegoro disclosed at the State Palace.
Under the original development budget, the government spending was set at 1,325.6 trillion rupiah (equal to 100.447 billion U.S. dollars), according to government data.
Indonesian President Joko Widodo who came into office in October 2014 aims to pursue over 7 percent economic growth at the end of his five year term by constructing massive infrastructure projects.
The country’s economy accelerated at a faster pace of 5.04 percent, at the final quarter from revised 4.74 percent at the previous quarter, as the spending of development budget rise sharply amid weak exports and investment, according to the national statistic bureau. For this year, the government expects the economy to expand by 5.3 percent compared with 4.79 percent last year.
