REPUBLIKA.CO.ID, JAKARTA – The government planned to make additional debt for Rp76.6 trillion this year. This was mentioned in the bill of Budget in Brief APBN-P 2017.

The bill noted Rp461.3 trillion of debt financing or increased Rp384.7 trillion from the basic APBN. The additional debt would be allocated to patch the budget deficit this year, in line with the increase of state expenditure and shortfall tax.

State revenue had been reduced in RAPBN-P 2017 amounting to Rp1,714.1 trillion. This figure dropped by Rp36.2 trillion from the revenues in the basic state budget, Rp1,750.3 trillion. Shortfall taxation was recorded at Rp 48 trillion. This was derived from tax revenue in the Revised State Budget of 2017 which amounted to Rp1,450.9 trillion, missing from the target in the basic APBN worth Rp1,498.9 trillion.

On the expenditure side, the government submitted revised state expenditure in RAPBN-P 2017 amounting to Rp2,111.4 trillion or an increase of Rp29.9 trillion from its target in the basic APBN of Rp2,080.5 trillion. 

From the elaboration of expenditure and state revenues, either from the basic APBN or RAPBN-P 2017, it seemed that there was a widening deficit. Referring to the state budget prior to the change, the government's fiscal deficit amounted to Rp330.2 trillion or 2.41 percent of Gross Domestic Product (GDP). 

Meanwhile, when referring to RAPBN-P 2017, the fiscal deficit widened to 2.92 percent of GDP by Rp 397.2 trillion.

"It is (debt) to keep the deficit (fiscal) not beyond the expected, of course in the form of bond issuance," said Coordinating Minister for Economic Affairs Darmin Nasution at his office, Jakarta, Friday (7/7).

Darmin also believed Indonesia began to feel the flow of funds coming in quite swift. The government, he said, has also taken into account the market's ability to absorb the entire flow of incoming funds. Although debt financing has increased, Darmin asked the public not to see it only from one side only.

He considered, during this withdrawal of debt intended to raise productive spending, in addition to the safety of the budget deficit. 

The budget deficit should not exceed 3 percent of GDP, in accordance with the mandate of Law No. 17 of 2003 on State Finance. "We do not want to cut it (budget) so we want to keep the state budget is not contractive, its expansive," said Darmin.

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