JAKARTA -Indonesia's budget deficit this year is estimated at 2.7% of gross domestic product, higher than the government's 2.29% target, as state spending is expected to increase due to the rupiah's depreciation, its finance minister said on Monday.
The government's spending on fuel subsidies has increased due to the weaker rupiah, but Finance Minister Sri Mulyani Indrawati said the government will remain vigilant in its debt management and will optimise the use of its excess cash from last year's budget. "Hopefully this will help maintain macroeconomic stability, especially the exchange rate movements and government bond yields," she told the parliamentary budget committee.
Said Abdullah, the committee chair, warned the government about the risk of lower tax revenue this year and suggested that it put on hold projects that had a smaller impact on economic growth.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.