Finance Minister Sri Mulyani Indrawati assured business communities Monday the state budget cashflow was sustainable despite a risk of soaring fuel subsidies and a greater demand for fiscal stimulus.

"The amount of expendable cash in our state budget is now Rp 64 trillion (US$695 million). We are facing no cash flow difficulties at all," Mulyani said after a cabinet meeting at the State Palace.

"Revenues from oil and non-oil sectors, as well as from tax and non-tax sectors flow well to our state budget," she said.

The former economist explained the only concern facing the economy was accelerating inflation, which the government had pledged to immediately contain.

During the meeting, the government remained upbeat that despite higher oil price projections in the state budget, fiscal sustainability would remain strong even if global oil prices hovered at around $100 per barrel and fuel consumption was to exceed 35.5 million kiloliters.

Mulyani said the increasing amount of subsidies would be financed through revenues from the oil and gas sector, and from efficiency measures among government agencies.

The state budget is expected to save a total of Rp 30 trillion from a 10 percent cut in expenditure by agencies.

"This year's deficit will also be covered through the sale of state bonds and from foreign debts," Mulyani said, adding the government had already secured an additional debt worth $500 million from the Japanese government, and another $2.6 billion jointly from the World Bank and the Asian Development Bank.