Jakarta (Antara Bali) - Finance Minister Agus Martowardojo predicts budget deficit will reach 2.35 percent by the end of the year or a little above the macro-assumption of the 2012 revised budget at 2.23 percent.
"We have indeed set the target at 2.23 but conditions including oil lifting and exchange rates have not developed as expected and so the deficit may reach 2.34 or 2.35," he said here on Friday.
He said other reasons for the widening deficit were adjustments that the government has to make relating to management of subsidized fuel oil consumption that surpassed the quota.
"Initially we set the quota at 40 million kiloliters but it has risen to 43.5 million kiloliters causing a 1.2 million kiloliters gap. This is not a case that we cannot control but coordination is needed to deal with it as the subsidy burden has thus risen to Rp230 trillion," he said.
The minister however said that overall conditions remain secure as compared to other countries that are now unable to control the impact of their fiscal policy.
Regarding the budget deficit for 2013 he said the government sticks to the assumption of 1.65 percent set based on the country's financial health and global economic conditions in October 2012.
"The budget was approved in October but situation has changed a lot now especially the Indonesia Crude Price which now stands at US$112 per barrel while in the 2013 budget our assumption is US$100 per barrel," he said.(*/DWA)
