Commission OKs state budget revision<\/p>\n
Urip Hudiono
\nThe Jakarta Post\/Jakarta<\/p>\n
The House of Representatives Budget Commission has finally given
\nits official nod to the government's 2005 state budget revision,
\nwhich will enable the poor to receive much-needed assistance and
\nfor tsunami-stricken Acehnese to get reconstruction funds.<\/p>\n
After a lengthy deliberation between the government and the
\nHouse, which finished at about 11 p.m. on Tuesday, Minister of
\nFinance Jusuf Anwar and Bank Indonesia Governor Burhanuddin
\nAbdullah along with Budget Commission chairman Emir Moeis
\nannounced that the commission had in principle agreed with the
\ngovernment on all revisions to the budget's allocations and
\nmacroeconomic assumptions, despite the need to finalize several
\nspecific details.<\/p>\n
The commission, in particular, has requested that the
\ngovernment explain in detail its disbursements of welfare
\nassistance funds for the education and health sectors.<\/p>\n
\"We hope to be able to work out these details within the next
\ntwo days, and then bring the budget revision to House's plenary
\nsession next week,\" Emir said.<\/p>\n
In the plenary session, the House is expected to officially
\namend Law No. 36\/2004 on the 2005 state budget that incorporates
\nthe revisions.<\/p>\n
Concerning the welfare assistance funds, the Budget Commission
\nhas agreed to set aside a total of Rp 11 trillion (US$1.14
\nbillion), up from Rp 10.78 trillion proposed earlier by the
\ngovernment.<\/p>\n
The government will allocate Rp 6.27 trillion of the funds to
\nreduce basic education fees, Rp 3.87 trillion to improve public
\nhealth services and Rp 3.34 trillion for rural infrastructure
\ndevelopment.<\/p>\n
It has allocated low-income earners assistance funds to help
\npoor families who were adversely affected by the recent fuel
\nprice hike.<\/p>\n
The government raised domestic fuel prices on March 1 in order
\nto cut burgeoning fuel subsidies, which have been revised to Rp
\n76.5 trillion from a previous Rp 19 trillion in this year's state
\nbudget. The increased amount for the fuel subsidy is a result of
\nthe revised rupiah exchange rate -- from Rp 8,900 to Rp 9,300 per
\ndollar -- and the dramatic increase in the price of crude oil,
\nfrom $35 per barrel to $45.<\/p>\n
Other macroeconomic assumptions in the budget were also
\nrevised upwards, except for the country's oil production of 1.125
\nmillion barrels per day which remains the same. Economic growth
\nis expected to reach 6 percent, inflation 7 percent and the
\ncentral bank's benchmark interest rate at 8 percent.<\/p>\n
As for funds for Nanggroe Aceh Darussalam, the commission has
\nagreed to set aside Rp 13 trillion for the province's
\nrehabilitation and reconstruction, with Rp 3.97 trillion of it
\ncoming from the debt moratorium from donor countries. The rest of
\nthe moratorium monies will be allocated for government reserve
\nfunds and to help plug the budget deficit.<\/p>\n
With these two primary additional allocations, state
\nexpenditures will amount to Rp 511.91 trillion, while state
\nrevenues will total Rp 491.6 trillion.<\/p>\n
The budget deficit will therefore amount to Rp 20.33 trillion,
\nup from Rp 17.39 trillion. The deficit will remain at 20 percent
\nof the country's gross domestic product (GDP), which is expected
\nto reach Rp 2,624 trillion this year.<\/p>\n
Jusuf appreciated the commission's stance and hoped that the
\nbudget revision would help the country's financial condition to
\nbe more sustainable and realistic.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/commission-oks-state-budget-revision-1447893297",
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"sponsor": "Okusi Associates",
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