Govt Spending Allocation Increases Due to Subsides

Jakarta (Antara Bali) - The government's spending allocation increases Rp42.4 trillion to Rp1,196 trillion in the revised 2013 state budget due to a rise in fuel and electricity subsidies, the Finance Ministry said.

"Fuel and electricity subsidies rise as a result of a change in basic macro economic assumptions," the acting chief of the ministry's fiscal policy body, Bambang Brojonegoro, said here on Tuesday.

He said spending on fuel subsidy is set at Rp199.8 trillion and electricity subsidy at Rp99.8 trillion, with the volume of subsidized fuels remaining at 48 million kiloliters.

"Overall, the government's spending on subsidies increases Rp30.9 trillion also because of a change in the parameter used as a basis for the calculation of energy subsidy, such as the volume of subsidized fuel consumption," he said. (*/M038)