House approves budget revision<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The House of Representatives budget commission has approved
\nthe 2001 revised state budget which sees a slightly wider
\ndeficit.<\/p>\n
The government proposed the revision earlier this week, one
\nmonth before the budget year ends on Dec. 31, due to the
\nweakening rupiah, higher inflation and rising interest rates.<\/p>\n
The deficit widened slightly to Rp 54.7 trillion (about
\nUS$5.26 billion) from the planned Rp 54.3 trillion, but finance
\nminister Boediono said that it was still within the safe level of
\naround 3.7 percent of gross domestic product (GDP), as previously
\ntargeted.<\/p>\n
Certain macroeconomic assumptions in the state budget had been
\noff-target.<\/p>\n
The rupiah exchange rate is expected to average at Rp 10,219
\nper U.S. dollar against the budget assumption of Rp 9,600; the
\nfull year inflation rate is expected to reach 11.9 percent
\nagainst the 9.3 percent assumption; and the average interest rate
\nof Bank Indonesia's three-month SBI promissory notes was 16.4
\npercent compared to the assumption of 15 percent.<\/p>\n
But the government is optimistic that the full year economic
\ngrowth target of 3.5 percent would still be achieved.<\/p>\n
Under the revised budget, revenue is expected to be higher at
\nRp 299.9 trillion, up from an initial figure of Rp 286 trillion,
\nwhile expenditure would increase to Rp 354.6 trillion from Rp
\n340.3 trillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-approves-budget-revision-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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