2011-2016 Indonesian National Budget Deficit

Economics & Macro

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05/08/2016 14:32 WIB

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2011-2016 Indonesian National Budget Deficit

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The 2016 fiscal deficit is projected to swell to 2.5 percent of Gross Domestic Product (GDP), despite government plans to cut spending due to unmet tax revenue targets. This figure is higher than the deficit targeted in the 2016 Revised State Budget (APBN-P), which was 2.35 percent of GDP.

To keep the budget deficit below three percent, as mandated by law, the Ministry of Finance will increase funding sources by Rp 17 trillion, raising the target in the APBN-P 2016 from Rp 296.7 trillion to Rp 313.7 trillion. The government will also cut spending by Rp 133.8 trillion, comprising Rp 65 trillion in cuts to Ministry/Agency (LK) budgets and Rp 68.8 trillion in reduced transfers to regional governments.

In the APBN-P 2016, total state revenue was set at Rp 1,786.2 trillion and expenditure at Rp 2,082.9 trillion, resulting in a projected deficit of Rp 296.7 trillion, or 2.35 percent of GDP. Since 2011, the budget deficit has increased annually. The deficit spending policy is a stimulus to drive economic growth while maintaining fiscal sustainability.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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2011-2016 Indonesian National Budget Deficit

2011-2016 Indonesian National Budget Deficit

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2011-2016 Indonesian National Budget Deficit

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