Govt draft 2005 economic indicators<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Minister of Finance Boediono said on Wednesday that the
\ngovernment would submit the 2005 macroeconomic assumptions to the
\nHouse of Representatives in May.<\/p>\n
He said that the figures could be used by the new government
\nas a basis to design the 2005 state budget.<\/p>\n
\"We'll formulate economic figures that could be achieved in
\n2005,\" he said.<\/p>\n
He did not provide details, but according to a document from
\nthe State National Development Planning Agency (Bappenas) the
\ngovernment projected next year's economy to grow by 5 percent,
\ninflation 5.5 percent, the budget deficit to be 0.6 percent of
\ngross domestic product (GDP), the tax ratio 13.7 percent of GDP
\nand the rupiah exchange rate Rp 8,600 per U.S. dollar.<\/p>\n
There has been concern expressed that the new government, a
\nresult of a general election process currently under way that
\ncould last until September, would have insufficient time to
\ncomplete the 2005 state budget unless the current administration
\nhelped in making an initial draft.<\/p>\n
Boediono said earlier on Tuesday that the government fiscal
\npolicy next year should be focussed on a further reduction in the
\nstate budget deficit and in the public debt level to help
\nmaintain investor confidence in the economy.<\/p>\n
\"The deficit that grew after the (late 1990s) economic crisis
\nhas now been significantly reduced. We hope it will not grow
\nagain,\" he said.<\/p>\n
The budget deficit this year is estimated at 1.2 percent of
\nGDP, or equal to around Rp 24.4 trillion (about US$2.87 billion).<\/p>\n
Boediono added that the government's debt level had also been
\nreduced to around 60 percent to 70 percent of GDP, from around
\n100 percent of GDP during the crisis.<\/p>\n
He said the new government should continue to prioritize a
\nfurther reduction in the debt level to help create healthy fiscal
\nconditions.<\/p>\n
The government has won praise from international creditors
\nover its success in significantly reducing deficit and debt
\nlevels.<\/p>\n
Indeed, this achievement, and rising stability in the
\ncountry's macroeconomic indicators, helped the government to sell
\na $1 billion sovereign bond issue earlier in March.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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