Current state budget enjoying $2.2b surplus<\/p>\n
JAKARTA (JP): The implementation of the current 1998\/1999
\nstate budget had resulted in a surplus of Rp 16.39 trillion
\n(US$2.2 billion) as of Nov. 14, 1998, according to an official
\nreport.<\/p>\n
The report by Finance Minister Bambang Subianto to a monthly
\ncabinet meeting on economic matters on Wednesday revealed that
\nthe government had collected Rp 128.776 trillion in revenue, or
\n48.8 percent of the target set in the current budget.<\/p>\n
Meanwhile, government spending totaled Rp 112.38 trillion, or
\n42.6 percent of the target set in the budget which ends in March
\n1999.<\/p>\n
"As of November 1998, our state budget was positive. The
\namount of state income exceeded expenditure, resulting in a
\nbudget surplus of Rp 16.39 trillion," the report said.<\/p>\n
On the income side, revenues from oil and gas totaled Rp 27.57
\ntrillion, or 55.5 percent of the budget target; while non-oil
\nincome reached Rp 68.94 trillion, or 69.2 percent of the target.<\/p>\n
Meanwhile, the disbursement of foreign aid was quite slow,
\ngiving the government Rp 32.26 trillion in funds, or 28.2 percent
\nof the target set by the budget.<\/p>\n
These disbursed foreign borrowings consisted of Rp 16.92
\ntrillion in quickly-disbursed program loans and Rp 15.34 trillion
\nin project-related loans.<\/p>\n
On the other side, routine expenditure reached Rp 84.24
\ntrillion, or 49.2 percent of total envisaged in the current
\nbudget.<\/p>\n
Meanwhile, development (investment) spending accounted for
\nonly 30.4 percent of the budget, or Rp 28.14 trillion, of which
\nRp 12.8 trillion was financed by rupiah-denominated funds and the
\nremaining Rp 15.34 trillion by foreign project-related loans.<\/p>\n
The rupiah-denominated spending included Rp 4.47 trillion for
\nsocial safety nets and Rp 2.8 trillion for bank restructuring.<\/p>\n
Disbursement of funds for social safety nets was relatively
\nslow in the first semester of the current budget, reaching only
\n16 percent of the budget, but it was on the rise in the last two
\nmonths.<\/p>\n
State Minister of National Development Planning Boediono
\nrevealed that about 25 percent of the planned spending for the
\nnet programs had been disbursed as of Nov. 14.<\/p>\n
He expressed optimism that despite a late start the
\ndisbursement of funds for the social safety nets would meet the
\ncurrent budget year's target.<\/p>\n
The finance minister's report projected that the current
\nbudget would see some changes both in revenues and spending due
\nto changes in some of assumptions.<\/p>\n
The rupiah's exchange rate against the U.S. dollar, for
\ninstance, is now projected to average Rp 9,514 per dollar for the
\ncurrent budget, compared to the original estimate of Rp 10,600.<\/p>\n
The stronger rupiah would affect both income and expenditure.
\nOn the income side, it would reduce -- in rupiah terms -- the
\nvalue of foreign borrowing.<\/p>\n
The realization of quickly-disbursed loans would reach only Rp
\n37.96 trillion, or 51.3 percent of the target set, while that of
\nproject-related foreign loans would be Rp 27.81 trillion, or 68.6
\npercent of the budget.<\/p>\n
Expenditure-wise, the strengthening rupiah would reduce
\ngovernment costs for foreign debt servicing by Rp 7.57 trillion,
\nfuel subsidies by Rp 3.7 trillion and other subsidies by Rp 7.79
\ntrillion.<\/p>\n
Another important change was crude oil prices, which are now
\nprojected to average $12.3 per barrel, compared to the original
\nestimate of $13.<\/p>\n
Income from the oil and gas sector would reach Rp 43.35
\ntrillion, or 87.2 percent of the budget target.<\/p>\n
Both Bambang and Boediono, however, remained confident that
\nthe falling crude oil prices on the international market now
\nwould not affect the budget significantly and therefore, it was
\nnot necessary for the government to revise it again.<\/p>\n
"Our budget is safe so far despite the low oil prices. But we
\nare remaining cautious," Bambang said.<\/p>\n
Boediono added: "Our cash flow is good, so there is no need to
\nrevise the budget."<\/p>\n
Bambang noted that the falling revenues from oil and gas would
\nbe complemented by increasing tax and excise revenues, which were
\nexpected to reach Rp 89.47 trillion, or 122.7 percent of the
\ntarget. (prb\/rid)<\/p>",
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