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Indonesia's parliament approves 2016 budget, deficit at 2.15% of GDP

[JAKARTA] Indonesia's parliament on Friday approved the 2016 state budget with a deficit of 273.2 trillion rupiah (S$28.04 billion), or 2.15 per cent of gross domestic product (GDP).

The deficit is smaller than the central bank's estimate for 2015 budget deficit of 2.5 per cent of GDP.

By law, the budget deficit for state finances in Indonesia is capped at a maximum of 3 per cent of GDP, including the budgets of regional governments.

The parliament agreed on an allocation of 2,095.7 trillion rupiah for spending, 20 per cent of which will go to education and 5 per cent to expenditure related to health.

The government's revenue target was set at 1,822.5 trillion rupiah, assuming GDP growth of 5.3 per cent.

REUTERS