Budget deficit for 2011 estimated at 1.8%

JAKARTA: Government projects budget deficit for a fiscal year of 2011 is about 1.8%, following a hike in state revenue over past years, which is expected to continue this year.

Therefore, President Susilo Bambang Yudhoyono urges every party to work hard in realizing higher revenue so as to maintain the defisit estimation as target.

In addition, government also asks for a synergy between state and regional governments in carrying out development policies.

As President stated, government has allocated IDR1,229.6 trillion for state expenditure in 2011, increasing by 9.2% from last year’s spending.

President continued that the hike in state expenditure expectantly accelerates Indonesia’s economic growth. Meanwhile, the 2011 state expenditure target of IDR1,229.6 trillion will depend on domestic revenue.

In Law on State Budget 2011, the state revenue and grant this year escalated 11.3% to IDR1,104.9 trillion. (T01/NOM)