JP\/13\/budget<\/p>\n
Govt paints upbeat picture for 2006<\/p>\n
Urip Hudiono
\nThe Jakarta Post\/Jakarta<\/p>\n
The government unveiled on Wednesday macroeconomic indicators
\nthat would become the basis for the drafting of the 2006 state
\nbudget, casting for higher economic growth, and lower inflation
\nand deficit targets compared to 2005.<\/p>\n
The government is also optimistic that the rupiah will be
\nstronger next year, but has taken into consideration the
\ncountry's declining oil production.<\/p>\n
Speaking at the opening of a three-day National Development
\nPlanning Plenary Meeting to draft next year's Government Action
\nPlan (RKP), Minister of Finance Yusuf Anwar said the government
\nexpects the economy to grow at 6.1 percent on improving exports
\nand investment, in addition to stronger domestic consumption.<\/p>\n
\"The economy will grow faster, from 5.5 percent this year to
\nbetween 5.5 percent and 6.5 percent in 2006,\" he said.<\/p>\n
\"The inflation rate, meanwhile, will be in the range of 4.5
\npercent and 6.5 percent, with the rupiah stabilizing in line with
\nour economy's improving competitiveness.\"<\/p>\n
In a revision to the 2005 budget -- scheduled for deliberation
\nby the House of Representatives next month -- the government is
\nprojecting economic growth of 5.5 percent, from a previous 5.4
\npercent.<\/p>\n
Faster economic growth is crucial in helping the country deal
\nwith chronic poverty and unemployment. Every 1 percent of
\neconomic growth is calculated to be able to absorb up to 400,000
\nnew workers.<\/p>\n
Each year, up to 2.5 million new workers enter the job market.<\/p>\n
The government also revised upward the country's on-year
\ninflation rate to 7.0 percent from 5.5 percent, while setting a
\ndeficit target of 0.8 percent.<\/p>\n
Yusuf explained that the government's fiscal policies for next
\nyear would continue this year, outlining further fiscal
\nconsolidation efforts in terms of the deficit and the country's
\ndebt ratio, while implementing more effective and manageable
\nstate financing schemes.<\/p>\n
\"The government aims to continue lowering the budget deficit
\ngradually, from 0.8 percent this year to between 0.5 and 0.7
\npercent next year,\" he said.<\/p>\n
\"We will also decrease the country's debt to gross domestic
\nproduct (GDP) ratio from 47.5 percent this year to between 42.5
\npercent and 43.3 percent next year.\"<\/p>\n
Yusuf explained that implementing sustainable state financing
\nschemes was important, and it would be one of the main challenges
\nin achieving next year's targets, with the state experiencing
\ndecreasing revenues and increasing expenditures.<\/p>\n
State expenditure this year alone is estimated to reach Rp
\n463.3 trillion (US$48.7 billion).<\/p>\n
\"Our opportunity to offer government bonds to help finance the
\nbudget is becoming more limited, as the (bond) market could
\nbecome saturated,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13budget-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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