REPUBLIKA.CO.ID, JAKARTA - Government rises 2014 fiscal budget after fuel price hike. Coordinating Minister for Economic Affairs, Hatta Rajasa said that budget would be spent on infrastructure, especially in rural areas.
"Infrastructure spending may include construction of roads, bridges, ports and transportation means. President did not elaborate it yet, but there will be more funds for infrastructure spending," Rajasa said on Wednesday.
Minister of Finance Chatib Basri said government prepared fiscal space up to 18.4 trillion IDR in 2014 state budget as a consequence of fuel subsidies reduction. About 13 trillion IDR of it is allocated for infrastructure spending and 3.8 trillion IDR to support National Social Security System (BPJS).
Fiscal space refers to the flexibility of a government in its spending choices, and, more generally, to the financial well-being of a government.