Govt records low deficit in first half<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government has said it posted a budget deficit of Rp 2.5
\ntrillion (US$304.87 million) in the first half of the year, well
\nbelow the full-year deficit target of Rp 34.4 trillion, thanks
\nprimarily to improving macroeconomic indicators.<\/p>\n
The deficit in the first six months of the year accounted for
\nabout 7.3 percent of the Rp 34.4 trillion target, said a media
\nrelease on Thursday from the Ministry of Finance. The Rp 34.4
\ntrillion deficit was equal to around 1.8 percent of the country's
\ngross domestic product (GDP).<\/p>\n
A stronger exchange rate of the rupiah against the U.S. dollar
\nand declining Bank Indonesia benchmark interest rate have helped
\ncut spending, particularly on foreign and domestic debt
\nrepayments.<\/p>\n
The release said that the rupiah had strengthened to an
\naverage rate of Rp 8,693 per U.S. dollar during the first
\nsemester, less than the state budget assumption of Rp 9,000 per
\ndollar.<\/p>\n
Inflation has also eased, mainly because of the stronger
\nrupiah, which made imported goods cheaper. In the January through
\nJune period, the cumulative inflation level was 1.23 percent, way
\nbelow a full-year forecast of 9 percent.<\/p>\n
Solid development in the rupiah and weak inflation have
\nallowed the central bank to retain its aggressive stance in
\ncutting its benchmark interest rate.<\/p>\n
During the first six months of the year, the interest rate has
\naveraged 11.65 percent, around 1.35 percentage points short of
\nthe state budget target.<\/p>\n
These factors have helped keep the government's expenditure
\nmanageable, with around Rp 139.7 trillion spent from January
\nthrough June, 37.7 percent of the total allocation for the whole
\nyear.<\/p>\n
On the revenue side, the budget gained Rp 137.2 trillion as of
\nJune, or around 40 percent of the total 2003 revenue target.<\/p>\n
Target & Realization of 2003 Budget
\n----------------------------------------------------------<\/p>\n
Full-year GDP H1<\/p>\n
Target<\/p>\n
(Rp) (%) (realization)
\n----------------------------------------------------------
\n* State revenue: 336.6 t 17.3 137.2 t
\n* State expenditure: 370.6 t 19.0 139.7 t<\/p>\n
- Routine : 188.9 t 9.7 71.0 t<\/p>\n
- Development: 65.1 t 3.4 14.2 t<\/p>\n
- Regional: 116.9 t 5.9 54.5 t
\n* Budget deficit: 34.4 t 1.8 2.5 t
\n* Domestic finance: 22.5 t 1.2 1.6 t
\n* Foreign finance: 12.0 t 0.6 0.8 t
\n----------------------------------------------------------
\nSource: Ministry of Finance<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-records-low-deficit-in-first-half-1447893297",
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