Government to submit two budget revisions<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The government will submit revisions to the 2005 state budget
\ntwice this year to address changing financial needs, including
\nthe Rp 10.5 trillion (US$1.13 billion) welfare program to be
\nfinanced from the slashed fuel subsidy.<\/p>\n
Minister of Finance Yusuf Anwar said on Tuesday the first
\nrevision would be proposed to the House of Representatives in
\nApril to address the financing needs of a series of programs
\ntargeted directly at the poor, the reconstruction of Aceh and the
\nupcoming regional elections.<\/p>\n
The first revision will be based on the assumption that
\nexpenditures by state institutions will remain the same.<\/p>\n
Yusuf said that in the revised budget draft the price of oil
\nwould be set by the government at US$35 per barrel from the
\nprevious $24 per barrel.<\/p>\n
"The deficit will also rise to 1.07 percent," he said.<\/p>\n
The deficit was previously set at 0.8 percent of this year's
\ngross domestic product. The government previously revised the
\nrupiah exchange rate from Rp 8,600 to the dollar to Rp 8,900.<\/p>\n
The government announced that beginning March 1 it would cut
\nthe fuel subsidy, which had grown massive due to soaring global
\noil prices. To offset the higher fuel prices, the government
\nannounced it would take money from the slashed subsidy and
\nchannel it into programs targeted at the poor.<\/p>\n
However, the funds for these programs cannot be disbursed
\nimmediately because it involves a budget revision, which requires
\nthe House's approval.<\/p>\n
Yusuf said the planned budget revisions would not violate the
\nState Budget Law, which does not specify how many times and when
\nthe government can revise the state budget.<\/p>\n
"The 'when' is usually at the end of the first semester,
\nsometime in June or July," he said.<\/p>\n
However, Yusuf said the revisions still required approval from
\nthe House. "That is why we are holding consultation meetings with
\nthe House on these revisions to secure its approval."<\/p>\n
He hoped the House would approve the April revision quickly,
\nparticularly as it concerned the disbursement of funds to assist
\nthe poor.<\/p>\n
Most of the money for these low-income assistance programs
\nwill go toward providing free education, health care and
\ninexpensive rice for the poor, and financing rural infrastructure
\nprojects.<\/p>\n
Several legislators have expressed opposition to the
\ngovernment's fuel hike policy. They also say the money from the
\nslashed fuel subsidy meant to finance the assistance programs for
\nthe poor will be at risk of embezzlement. Legislators hope to
\nquestion the government about the policy.<\/p>\n
Yusuf defended the government's actions, saying if the
\ngovernment did not raise domestic fuel prices it would have had
\nto allocate Rp 60 trillion for the fuel subsidy in this year's
\nstate budget.<\/p>\n
"That is much more than our budget for education, health and
\ndevelopment," he said. "It is obviously unfair, so I hope the
\nHouse will consider this when considering our proposed
\nrevisions."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-submit-two-budget-revisions-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}