City budget for 1998\/1999 revised<\/p>\n
JAKARTA (JP): The city administration has upwardly revised its
\nbudget for the 1998\/1999 fiscal year by 23 percent to Rp 1.6
\ntrillion (US$145.45 million) as the result of a significant rise
\nin revenue raised through hotel and entertainment taxes and land
\nstatus upgrading fees, a city official announced on Wednesday.<\/p>\n
City Secretary Fauzi Bowo told the media that the changes had
\nbeen made to the city budget because forecasts of revenue raised
\nfrom the two sources were "previously calculated under a very
\npessimistic set of conditions". It is the third time the city
\nadministration's budget has been altered this fiscal year,
\nalthough the first two revisions were cuts.<\/p>\n
However, Fauzi, who also heads the city tourism agency
\nresponsible for supervising hotels and entertainment spots in the
\ncapital, declined to disclose the increase in revenue raised
\nthrough the two sources.<\/p>\n
"The details of the revised budget will be announced on
\nMonday," he said.<\/p>\n
The budget for this fiscal year was initially set at Rp 3.2
\ntrillion but was then cut, first to Rp 2.7 trillion and then to
\nRp 1.3 trillion as the economic crisis worsened.<\/p>\n
The budget has been prepared assuming a static economy and a
\n25 percent rate of inflation.<\/p>\n
The cut in their budget has forced the city administration to
\nfocus on routine expenditures and to exercise great care in the
\nuse of what little funds it has at its disposal.<\/p>\n
Data from the Jakarta office of the National Land Agency shows
\nthat revenue raised from administration fees associated with the
\nprocess of upgrading land status amounted to Rp 21.9 billion in
\nthe first four months of this fiscal year, which began on Apr. 1,
\n1998.<\/p>\n
The running total is already 62.5 percent of the Rp 35 billion
\ntarget included in the city administration's previous budget.<\/p>\n
"It is possible that by the end of the current fiscal year,
\nincome from land status upgrading will have exceeded the initial
\nforecast," Amarullah Asbah, the head of City Council Commission C
\nfor financial affairs, commented.<\/p>\n
Fauzi said the extra money in the revised budget would be used
\nto finance public services, including the repair of elementary
\nschool buildings, providing flood victims with logistical support
\nand undertaking repair work on the city administration's
\nbuildings aging buildings.<\/p>\n
But the head of the Golkar faction in the council, Fatommy
\nAsaari, called on the administration to give priority to
\nsupporting a people's economy by providing capital support.<\/p>\n
"They should not allocate the funds to restoration projects.<\/p>\n
"The extra revenue should be used to provide needy residents
\nwith capital, then the funds could be rolled on (when they are
\nrepaid)," Fatommy said. (ind)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-budget-for-19981999-revised-1447893297",
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