REPUBLIKA.CO.ID, JAKARTA - The National Economic Committee (KEN) said deficits in the country's state budget and current account balance should be compensated with its economic expansion.

"This has become paradoxical. We have double deficits, and at the same time we are facing economic slowdown," deputy chairman of KEN Raden Pardede said on Friday.

The budget deficit, which is covered with debts, should be used for development of productive sector, to sustain economic growth, according to Raden.

"We know that the budget deficit is caused by subsidy," he said.