Deficit May Widen

KOMPAS/PRIYOMBODO

Finance Minister Sri Mulyani Indrawati (center) and Deputy Finance Minister Mardiasmo (left) prepare to speak at a press conference on the June 2019 edition of the APBN KiTa (Performance of the State Budget) at the Finance Ministry, Central Jakarta, Friday (21/6/2019). For the realization of the 2019 State Budget to 31 May 2019, state revenue reached Rp 728.5 trillion, state spending was Rp 855.9 trillion and there was a deficit of 0.79 percent to gross domestic product.

JAKARTA, KOMPAS — The government is wary of the impact slowing tax revenue growth may have on the state budget. Revenue growth has weakened since the beginning of the year, which could cause a wider budget deficit, even though it is still expected to remain below the targeted 1.84 percent of the gross domestic product (GDP).

According to Ministry of Finance data, realized tax revenue as of May 2019 was Rp 569.3 trillion, or 31.9 percent of the 2019 state budget ceiling. Tax revenue in May 2019 was up 5.7 percent from May 2018. In May 2018, tax revenue had been up 14.5 percent from May 2017.