"We wish to control, so that consumption will not surpass 48 million kiloliters, the budget deficit did not increase and our fiscal condition remained healthy," Hatta said.
Jakarta (ANTARA News) - Chief economic minister Hatta Rajasa said controlling subsidized fuel consumption was still the solution for overcoming increasing spending on energy subsidy.

"We wish to control, so that consumption will not surpass 48 million kiloliters, the budget deficit did not increase and our fiscal condition remained healthy," he said here on Friday.

Hatta said controlling the consumption was important because expenditure on subsidies was predicted to surpass the ceiling in 2014, and therefore they had the potential to increase the budget deficit whose target was 1.69 percent of the GDP in the 2014 budget.

"If the control failed, while the rupiah was fluctuating and the Indonesia Crude price was rising subsidy will increase. This could affect the budget deficit and narrow the room for fiscal maneuvers," he said.

Hatta added that the narrow room for fiscal maneuvers will lead to a lack of adequate public funds for infrastructure spending, and this in turn will make it difficult for the new government to implement its development program.

"This will send the wrong signal. In view of that, it was important to prepare a draft budget for 2015 with an ample fiscal room and low deficit so that the new government had the opportunity to maneuver expenditure," he added.

The current government will end its term in October and a new government will take over, following the presidential election on July 9.

Hatta said raising the fuel price was not the primary option as yet, but the government was ready to make every effort to ensure that the budget deficit did not surpass three percent of the GDP in line with the law.

"If subsidy increased, the budget deficit will expand. I want to assure that the deficit will not surpass three percent. The essence was that we will maintain the deficit at below three percent, but if it increased something needed to be done," he remarked.(*)

Editor: Heru Purwanto
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