Jakarta – Indonesia is on track to achieve its full year budget target, the International Monetary Fund's country representative David Nellor, said Friday.

The projection comes after the government reported a realized deficit in the first half of only Rp 2.5 trillion (US$295 million), he said.

"I think the situation is very much on track and that's encouraging because that would help macro-economic stability," Nellor told reporters after attending the opening of the annual session of the People's Consultative Assembly (MPR).

Nellor said the government has made progress in tax collections. "They are working hard and showing strong effort," he said.

The government said Thursday that realized tax revenue for the first six months to June reached Rp 108.8 trillion or 42.8 percent of the budget target, while non-tax revenue totaled Rp 28.2 trillion or 34.3 percent of the target. Due to slower budget spending, the realized deficit in the first half was only 7.3 percent of the full year target of some Rp 34.4 trillion, or 1.8 percent of GDP.

The government has targeted full year revenue of Rp 336 trillion and expenditure of Rp 370.5 trillion.