Government decreasing the economic growth 2008 become to 6,4%
— yulyanto • February 17th, 2008
In line with the global economic slowdown currently, Indonesia would be revise its economic growth expectation down from 6.8 percent become to 6.4 percent in the 2008 budget revision.
According to President Soesilo Bambang Yudhoyono (SBY), global oil prices, which currently above US$ 90 per barrel, could cause the government’s subsidies for oil-based fuel and electricity to rise to Rp. 250 trillion ($27.21 billion) and in turn, reduce other subsidies, such as those on key commodities, health and education.
Yudhono said that if we are not revised and maintaining the economic growth and state budget in 2008, the country’s economy may collapse. It is not possible to keep economic growth (at 6.8 percent) with global economic condition currently and we know that almost every country in the world has revised economic growth down.
While, head of fiscal policy at the Finance Ministry, Anggito Abimanyu, said that the government had to revise the state budget after considering several crucial factors, such as the global economic slowdown and the surge in global oil prices and the prices of key commodities.
All those factors affect the assumptions in the 2008 state budget. If we maintain the state budget in the current state, the country’s deficit will be increase dramatically.
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