Budget Deficit Set To Be Less Than 2 Percent In 2015: Finance Minister

  Jakarta (Antara Bali) - Finance Minister Bambang Brodjonegoro said the deficit in the revised 2015 state budget would be pressed to less than 2 percent of the country's Gross Domestic Product (GDP) or lower than the deficit in 2014.

       "The deficit in the 2015 state budget  would not be higher than 2 percent. Therefore, the effect would be not only on  state bonds to be issued  but also on government debt structure," Bambang said here on Monday.

       He said evaluation would be made on debt management especially related to plan to issue bonds  and loans from multinational financial agencies  and the possibility of domestic loans.

       The mending of financing structure is to follow the  US economic recovery  with the FED expected to raise its benchmark  interest rate not later than the end of 2015.  
  "The interest rate is expected to rise 100 basis points  by the end of 20156. As a consequence I want cut the deficit to cope with the uncertainty. Big financing is normally  by domestic not foreign investors to forestall sudden reversal," he said.

       By utilizing domestic finance through issuance of instrument that could contribute to increase in number of investors in financial market , the domestic market would not be vulnerable to external pressures, he said.

       Data at the finance ministry  showed real deficit in 2014 budget was Rp227.4 trillion  or 2.26 percent of the GDP  or slightly below the target set in the revised state budget that year.

       The lower than target deficit was attributable to excess in budget financing  through the issuance of sovereign bonds.

       Altogether the budget deficit in 2014 included real state revenue of  Rp1,537.2 trillion  or  94 percent of the target of  Rp1,635.4 trillion  and state spending  of  Rp1,764.6 trillion or  94 percent of the ceiling of Rp1,876.9 trillion. (WDY)