Govenment Increases 2009 Budget Deficit

VIVAnews - To face the economic slowdown, the government will increase this year's budget deficit

"It's possible that the government will increase the budget deficit," said Head of Fiscal Analysis Agency Anggito Abimanyu on Monday, Jan 5.

According to Abimanyu, the increase in deficit is carried out to deal with the economic slowdown; it is estimated that revenues will adapt to the current situation.

However, Abimanyu reminded that the budget deficit will not rise by two percent. Initially, the deficit will be at a figure of one percent or Rp 51.3 trillion (US$4.7 billion). However, it will then be increased by 1.5 percent or Rp 25 trillion (US$2.3 billion).

According to Abimanyu, to cover the budget deficit, the government will look at budget surplus. However, most of budget surplus will also be allocated to boost the economy through budget stimulation package and financing programs or other needs which have yet to be paid in 2008 such as the Elections.

As for the stimulation package, Abimanyu went on to say that it will only be granted to several selected sectors.

Sectors that may contribute to foreign exchange value and absorb employment will be prioritized.

Translated by: Bonardo Maulana Wahono