The Indonesian government is trying to save 21 trillion Rp (roughly 1.93 billion USD) from the 2009 state budget to be able to cut a state budget deficit to 1.3 percent of the gross domestic product (GDP) next year, according to Antata news agency.
State Minister of National Development Planning Paskah Suzetta was quoted as saying to the press on Apr. 22 that the fund could also be used to increase fiscal stimuli and government subsidy in 2010.
"We will try to optimize the use of the 2009 state budget fund so that we can save 21 trillion Rp to keep down the budget deficit to 1.3 percent," he said.
By doing so, the government was optimistic that the 2010 budget deficit would be lower than the projected 2.5 percent of the GDP for this year, he added.
Suzetta, who is also chief of the National Development Planning Agency (Bappenas) said the draft 2010 state budget would constantly be based on conservative approaches although the economy would begin to recover next year.
"The year 2009 is the most fragile phase as the economic growth will contract," he said./.