REPUBLIKA.CO.ID, JAKARTA -- Director General of Budget in Ministry of Finance, Askolani ensured that the Ministry would cut government spending this year to keep budget deficit below 2.5 percent of gross domestic product (GDP). The spending efficiency has been attempted to be discussed at Revised State Budget 2014 by considering several macroeconomic assumptions.

"We will carry out efficiency in goods spending, social assistance, as well as personnel expenditure," Askolani said recently.

Directorate General of Budget will recalculate the impact to tax revenue, customs, also non-tax revenue. They also re-check the expenditure, such as subsidy funding to determine deficit figures.

The efficiency can be implemented from employee salaries' instrument, official travel and general social assistance, under direction of Ministry of Finance. Government will make sure to control the consumption of subsidized fuel based on the target.

The budget deficit will be higher than the target of 1.69 percent of GDP in State Budget. It is because the tax revenue did not reach the target due to a slow down assumption of national economic growth, from 6 percent to 5.5 percent. Rupiah exchange rate also fluctuated against USD.

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