Govt seeking to secure revised 2012 budget
Tue, April 24 2012 22:17 | 761 Views
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono is seeking to secure the revised 2012 budget and economic growth after the government failed to raise the subsidized fuel price to reduce oil subsidy on April 1.
"As the fuel price will not rise an option or a solution must be found. Unless there is an alternative our economy may become unhealthy," he said.
"As the fuel price will not rise an option or a solution must be found. Unless there is an alternative our economy may become unhealthy," he said ahead of a cabinet meeting here on Tuesday.
In the meeting this time President Yudhoyono would discuss thoroughly measures to make the country`s economy to grow 6.5 percent and the revised budget to remain secure.
Chief economic minister Hatta Rajasa meanwhile said that the revised budget had actually been made based on the increased price of subsidized gasoline by Rp1,500 a liter.
Without the price hike, the government now had to take measures to secure the revised budget while at the same time maintaining the economic growth.
The government`s measures to reduce pressure on the revised budget are among others anticipating possible swelling of the fuel subsidy due to increasing world crude price.
The high crude price has made the gap between the subsidized and non-subsidized fuels become wider to cause the subsidy to possibly soar.
On the other hand the gap may likely also increase demand for the subsidized gasoline to make the quota set at 40 million kilo liters a year to surpass.
In view of that the government is now studying options to reduce the pressure on subsidy by controlling and economizing the use of subsidized gasoline.(*)
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