REPUBLIKA.CO.ID, JAKARTA -- The State spending in the draft 2015 state budget increases by Rp143.1 trillion to Rp2,019.9 trillion due to the rising energy subsidy, Finance Minister Chatib Basri said.

"Fuel subsidy increases due to a carry-over of Rp44.6 trillion. Although electricity subsidy falls, fuel subsidy increases," he said at a press conference on the fiscal policy and posture of the draft 2015 state budget here, Friday.

State spending in the draft 2015 state budget is projected to reach Rp2,019.9 trillion, higher than the ceiling of Rp1,876.8 trillion in the draft 2014 state budget.

Energy subsidy in the draft 2015 state budget is expected to increase to Rp291.1 trillion from Rp246,5 trillion, while electricity subsidy is projected to fall to Rp72.4 trillion from Rp103.8 trillion.

The increase in state spending will also be the result of a 20 percent increase in the education budget and fund transfers to regional governments from Rp597 trillion to Rp640 trillion.

"If subsidy spending increases, the education budget will increase accordingly. The total state budget will also increase because fund transfers have risen Rp43 trillion to Rp640 trillion," he said.

The government had set the direction of subsidy policy in 2015 to maintain price stability, help the poor, keep the people's purchasing power, increase productivity, keep supplies at affordable prices and improve the competitive edge of the domestic industry, he said.

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