{
    "success": true,
    "data": {
        "id": 1427429,
        "msgid": "finance-minister-defends-bill-on-fiscal-balance-1447893297",
        "date": "1999-03-02 00:00:00",
        "title": "Finance minister defends bill on fiscal balance",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Finance minister defends bill on fiscal balance JAKARTA (JP): Finance minister Bambang Subianto turned down on Monday legislators' demands to include a clear-cut revenue sharing formula in the proposed law on striking fiscal balance between the central government and local administrations. He said the government would use a separate regulation to determine local administrations' share of income from natural wealth in their areas.",
        "content": "<p>Finance minister defends bill on fiscal balance<\/p>\n<p>JAKARTA (JP): Finance minister Bambang Subianto turned down on<br>\nMonday legislators' demands to include a clear-cut revenue<br>\nsharing formula in the proposed law on striking fiscal balance<br>\nbetween the central government and local administrations.<\/p>\n<p>He said the government would use a separate regulation to<br>\ndetermine local administrations' share of income from natural<br>\nwealth in their areas.<\/p>\n<p>Bambang explained that determining a revenue-sharing formula<br>\nneeded further comprehensive discussion with various government<br>\ninstitutions, with allocation of the nation's natural resources<br>\ncontained in various laws or draft bills currently before the<br>\nHouse.<\/p>\n<p>\"With such considerations, the ruling (on a revenue-sharing<br>\nformula) which still needs intense discussions will be stipulated<br>\nin the government regulation,\" he told House members during a<br>\ngeneral debate on the bill.<\/p>\n<p>Legislators have panned the draft, submitted to the House on<br>\nFeb. 12, as unclear in defining how local administrations would<br>\nbenefit from natural wealth in their areas. They have taken issue<br>\nwith the fact that essential elements of the fiscal relationship<br>\nwere still under central government control.<\/p>\n<p>Legislators complained that stipulating the revenue-sharing<br>\nformula in a separate regulation would be prone to manipulation<br>\nby the central government, thereby keeping provincial<br>\nadministrations heavily dependent on funding from Jakarta.<\/p>\n<p>Submission of the bill, together with an earlier draft on<br>\ngreater autonomy for provincial governments, was designed to<br>\ncreate more equitable distribution of income between the central<br>\ngovernment and provincial administrations.<\/p>\n<p>During the 32-year rule of Soeharto, resource-rich provinces<br>\nfailed to enjoy the benefits because a large part was funneled to<br>\nJakarta. Since Soeharto's ouster in May 1998, several provinces<br>\nhave demanded greater autonomy and a higher revenue share.<\/p>\n<p>Bambang said the bill was not only designed to obtain a<br>\nbalanced distribution of income between the central government<br>\nand the provincial administrations, but also as a means to reach<br>\nbalance among local administrations.<\/p>\n<p>\"There has to be a balance between areas with vast natural<br>\nresources and areas with lack of potential natural resources.\"<\/p>\n<p>He explained the bill would provide the central government<br>\nwith \"general funding\" as a mechanism for Jakarta to improve the<br>\nbalance of income among the provinces. (rei)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/finance-minister-defends-bill-on-fiscal-balance-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}