GOVERNMENT REVISING 2010 STATE BUDGET

Jakarta, March 9 (ANTARA) - The government is revising the 2010 state budget in light of expected improvements in economic conditions this year, Finance Minister Sri Mulayni said.

"The growth momentum is estimated to be stronger not only due to consumption but also to positive signals from business activities," Sri Mulyani said at a foreign press gathering at the finance ministry building here on Tuesday night.

The minister said actually there is a possibility to revise the 2010 economic growth to reach 6.0 percent, but the government maintained the 5.5 percent set previously.

According to Sri Mulyani, four assumptions which were revised namely the inflation assumption from 5.0 percent to 5.7 percent, the Bank Indonesia (Central Bank) interest rate Certificates (SBI) of three months from 6.5 percent to 7.0 percent.

The other ones are the rupiah exchange rate from rp10,000 per U.S. dollar became Rp9.500 per U.S. dollar. Crude oil price assumption is changed from 65 U.S. dollars per barrel to 77 U.S. dollars per barrel.

"While the assumption of lifting/oil production remains 965 thousand barrels per day," said the minister.

The minister disclosed that the government also conduct the price stability program during 2010 to keep the economy remains conducive.

The program includes maintaining the domestic oil prices by increasing the allocation of subsidies from Rp68.7 trillion to Rp89. 3 trillion.

Apart from that was the raise in food subsidy by increasing the supply of rice to poor people from 13 kg to 15 kg per family, the delay of fertilizer price increases by raising the subsidies from Rp14.8 trillion to Rp19.2 trillion, and tax subsidies to maintain cooking oil price stability for Rp0.2 trillion.

The finance minister also revealed that the government raised the state budget deficit in 2010 which increased to 2.1 percent of the GDP or Rp129.8 trillion or rose Rp38.1 trillion from the previous one Rp98 trillion or 1.6 percent.

Meanwhile, state revenues in the 2010 revised state budget is projected to reach Rp974.8 or up Rp25.2 trillion, compared to the previous Rp949.7 billion.

In the meantime, government spending to reach Rp1.104.6 trillion or rose Rp57 trillion from the previous Rp1.047.7 trillion.

The government used the 2009 budget leftover (Silpa) for Rp38.7 trillion to cover the deficit of the 2010 revised budget.

On the debt financing, the portion of foreign debt will be greater than the original projection namely Rp72.3 trillion from the previous Rp57.6 trillion.