Govt fails to meet state budget targets<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The ongoing increases in global oil prices and a volatile rupiah
\nexchange rate have become major obstacles for the government to
\nmeet its 2005 state budget targets, according to a report.<\/p>\n
The report shows the government has only managed to collect a
\ntotal of Rp 191.41 trillion (some US$19.5 billion) in revenues,
\nor 38.9 percent of the revised 2005 state budget target. In the
\nexpenditures, the government has only spent Rp 172.78 trillion,
\nor 33.8 percent of its target.<\/p>\n
Breaking down the revenues, tax yields contributed most to the
\nstate's coffers in the year's first semester, amounting to Rp
\n150.18 trillion (45.3 percent).<\/p>\n
State revenues from excise, meanwhile, were at Rp 14.39
\ntrillion (45.8 percent), whereas revenues from customs reached Rp
\n7.65 trillion (52.2 percent).<\/p>\n
The government is pinning its hopes on increased tax, excise
\nand customs revenues to finance this year's budget deficit, which
\nis expected to reach some Rp 20.33 trillion.<\/p>\n
Non-tax revenues -- including proceeds from the country's oil,
\ngas and mining exports -- amounted to Rp 41.2 trillion (27
\npercent).<\/p>\n
On state expenditures, the government has so far disbursed a
\ntotal of Rp 109.39 trillion (30 percent) in state procurement,
\nsalaries and subsidies, and Rp 63.39 trillion (42.9 percent) in
\ndevelopment funds for the regions.<\/p>\n
An increase in government expenditures is expected to boost
\nthe country's economic growth, which slowed down to 6.35 percent
\nduring the first quarter, as compared to 6.67 during last year's
\nfinal quarter, as government expenditures failed to materialize.<\/p>\n
The government is expected to submit the report to the House
\nof Representatives plenary session on Aug. 16, in which President
\nSusilo Bambang Yudhoyono will also deliver the 2006 state budget
\ndraft.<\/p>\n
State Minister for National Development Planning Sri Mulyani
\nIndrawati acknowledged that the government's expenditures had
\nbeen slow to materialize as many ministries and state
\ninstitutions adjusted their budgeting systems to the country's
\nnew fiscal regulations.<\/p>\n
\"As of June, the use of development funds only averaged about
\n10 percent,\" she said.<\/p>\n
Concerning the inflation rate, Mulyani said the government
\nindeed saw further pressures from rising demand.<\/p>\n
\"To decrease the inflationary pressures from rising demand, we
\nwill improve the distribution of goods,\" she said.<\/p>\n
-----------------------------------------------------------------<\/p>\n
First semester Full year Full year<\/p>\n
realization estimate target
\n-----------------------------------------------------------------
\nGDP growth (%, y-o-y) 6.35 6.0 6.0
\nInflation (%, y-o-y) 7.42 8.0 7.5
\nRupiah exchange rate (Rp\/US$) 9,412 9,500 9,300
\n-----------------------------------------------------------------
\nState revenues (trillion Rp) 191.41 516.03 491.59
\nState expenditures (trillion Rp) 172.78 542.21 511.92
\nBudget surplus (trillion Rp) 18.63 -26.18 -20.33
\n-----------------------------------------------------------------
\nSource: Ministry of Finance<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-fails-to-meet-state-budget-targets-1447893297",
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"sponsor": "Okusi Associates",
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