Linda Silaen, Jakarta – The International Monetary Fund has warned the Indonesian government of the possibility of a higher-than-expected deficit in the state budget this year due to a delay in the implementation of a tax regulation and only a limited fuel price increase, Finance Minister Prijadi Praptosuhardjo said Monday.

"The IMF asked the government to intensify efforts to raise revenues from domestic resources," Prijadi told reporters. The government canceled the plan to impose a tax on agriculture products after protests from parliament earlier this year.

As of Sunday, the government raised fuel prices for industrial users to between 50% and 100% of international market prices, in an effort to cut subsidies. It however shelved the plan to raise fuel prices for public, small and medium enterprises, the public transportation sector and the state-owned electricity company PT Perusahaan Listrik Negara until October.

The government this year is trying to limit the deficit in the state budget to 3.7% of the gross domestic product.