Jakarta (Antara Bali) - Finance Minister Chatib Basri said here on Wednesday that low
capital expenditure until April was in line with the governments
expectations.
"I think the relatively slow spending is in line with efforts to maintain the fiscal policy," he stated.
He noted that the low capital and goods expenditure would keep the
budget deficit from widening. Energy subsidy spending has so far reached
around 27 percent.
"If the expenditure is too fast and subsidy spending goes up, the
deficit may increase. We are now still using the 2014 budget that set
the budget deficit at 1.7 percent, and so, we cannot surpass that," he
remarked.
The finance minister pointed out that in line with the trend, the
budget deficit will increase in the third and fourth quarters, and so,
unless it is maintained, it could pose a problem for the next
government.
In view of that, the budget deficit must be maintained so that it
does not exceed the target and cause a fiscal problem for the next
government, which will start work in October 2014, he said.
The present administration of President Susilo Bambang Yudhoyono
will end its second term in October this year, and he will be replaced
by a new president following the presidential election scheduled to be
held on July 9.
Chatib Basri explained, "The deficit must be maintained so that
later, in the third and fourth quarters, the disbursements will not
burst. That is why we have come up with an austere idea so that when the
new government arrives, the deficit will not be too wide."
Based on the finance ministrys data, until April 30, 2014, state
revenues were recorded at Rp413.1 trillion, or 24.8 percent of the
target set in the current budget at Rp1,667.1 trillion, while state
expenditures were recorded at Rp432.7 trillion, or 23.5 percent of the
ceiling set at Rp1,842.5 trillion.
Tax revenue, meanwhile, reached Rp354.4 trillion, or 27.7 percent
of the target set in the current budget at Rp1,280.4 trillion, and
non-tax state revenues reached Rp58.4 trillion, or 15.2 percent of the
target set at Rp385.4 trillion in the current budget.
Expenditures for state employees reached Rp72.1 trillion, or 27.4
percent of the budget ceiling set at Rp263 trillion, while expenditure
for goods was Rp27.8 trillion, or 13 percent of the ceiling set at
Rp214.4 trillion, and capital expenditure reached Rp12.8 trillion, or 7
percent of the Rp184.2 trillion ceiling.
Energy expenditure, meanwhile, reached Rp76.4 trillion, or 27.1
percent of the ceiling set at Rp282 trillion, consisting of Rp53
trillion for fuel subsidies, or 25.2 percent of the Rp210.6 trillion
ceiling, and electricity subsidies at Rp23.4 trillion, or 32.8 percent
of the ceiling set at Rp71.4 trillion. (WDY)
Capital Expenditures Remain Low as Expected: Finance Minister
Kamis, 12 Juni 2014 8:14 WIB