Government Opens Opportunity to Cut Spending if State Budget Deficit is Pressed

JAKARTA - The government opens the opportunity to adjust state spending if the budget deficit widens due to economic pressures, including rising world oil prices.

The signal was conveyed by Minister of Finance Purbaya Yudhi Sadewa after the Plenary Cabinet Meeting at the Presidential Palace Complex, Jakarta, Monday (20/7).

According to Purbaya, the current fiscal condition is still safe. However, the government continues to monitor the development of oil prices which have increased again after previously falling.

"The deficit is under control. We just have to see. When the oil price fell, I would return some of it to programs, but the price has started to rise again. We must be careful with additional spending," he said.

Purbaya said that until now there has been no decision to cut the ministry's budget, including the defense budget as President Prabowo Subianto had mentioned on a previous occasion.

However, the option remains open if the fiscal conditions change.

"If it is possible that our deficit is disturbed, we will cut it. But it feels like it is not, it is still far from there," he said.

He ensured that the state of the state budget was still within safe limits.

The government continues to prioritize fiscal discipline amid global economic uncertainty.