Government Positive About Reducing Budget Deficit
Thursday, 14 December, 2006 | 15:20 WIB

TEMPO Interactive, Jakarta: The government is convinced that the realization of the budget deficit will be lower than the Revised State Budget 2006 projections.

Finance Minister Sri Mulyani Indrawati acknowledged she was optimistic that the budget deficit until the end of the year will only be between 1 and 1.1 percent of GDP.

This is still lower than the projection of Revised State Budget of 1.3 percent of GDP.

State revenues are also in line with the government's targets.
Sri Mulyani said she was convinced that domestic tax revenue targets, both income tax and value-added tax, will be achieved.

“Generally speaking, everything is still okay from the income tax side. We can still be optimistic (that the targets be achieved),” she said.

This year, domestic tax revenues have reached Rp410.22 trillion.

Income tax provides the highest contribution with Rp213.69 trillion and value-added tax Rp132.87 trillion.

On the contrary, however, revenues of international trade tax have decreased.

This year, it is targeted that international trade tax revenues will contribute Rp14.82 trillion.

According to Sri Mulyani, the decrease was caused by the decline in importing activities during 2006.

This was because in 2006, the economy was more stimulated by the trade and agriculture sectors, and was less dependent on raw materials or imported capital goods.

AGUS SUPRIYANTO | ANTON APRIANTONO | RR ARYANI