Govt mulls basing budget on calender year<\/p>\n
JAKARTA (JP): Finance Minister Bambang Sudibyo said on Monday
\nthe government was considering changing the current fiscal year
\nbudget to one based on the calender year.<\/p>\n
Speaking to reporters after a meeting of economic ministers,
\nBambang said that his office was preparing two versions of the
\nbudget for next year.<\/p>\n
He said the first one was a calender year budget that will run
\nfrom April to December 31, 2000, while the second was a fiscal
\nyear budget that will span from April to March 31, 2001, in case
\nthe proposal to adopt the calender year budget is rejected.<\/p>\n
Bambang said that although members of the House of
\nRepresentatives (DPR) had suggested using the calender year
\nbudget, which runs from January to December, there had not yet
\nbeen any official decision.<\/p>\n
\"We'll look to consult with the leaders of the DPR,\" Bambang
\nsaid.<\/p>\n
The argument for changing to a calendar year budget is to
\nsimplify development planning and administration.<\/p>\n
\"We still haven't decided ... We have to make a complete study
\nof this proposal before the government decides whether to adopt
\nthe calendar year,\" Bambang said.<\/p>\n
Bambang also said the future state budget must reflect a
\ngradual decline in foreign loans.<\/p>\n
He said that the role of domestic financing resources,
\nparticularly tax, must be strengthened in the future to help
\nfinance the state budget.<\/p>\n
Bambang said earlier at the weekend that another way to lower
\nthe dependence on foreign loans was to develop the domestic bond
\nmarket.<\/p>\n
He said that the upcoming International Monetary Fund's letter
\nof intent would include a strategy on how to develop the bond
\nmarket.<\/p>\n
The Indonesian foreign government debt is currently estimated
\nat more than US$67 billion.<\/p>\n
The amount of foreign loans are expected to increase in the
\ncurrent fiscal year ending in March 31, 2000 as the government
\nwill need an additional $1.2 billion in overseas loans in the
\nremaining period of the fiscal year.<\/p>\n
There has been increasing criticism over such large overseas
\nborrowing as it means that most of the country's economic
\nresources go to servicing the foreign loans.<\/p>\n
Several non-governmental organizations have demanded that
\nforeign donors, particularly the World Bank, reduce the country's
\ndebt by up to 30 percent, arguing debt had been corrupted by the
\nsame amount at the hands of the previous government, with the
\nfull knowledge of the donors.<\/p>\n
Bambang also said that another alternative to dependence on
\nforeign loans was to lower subsidies.<\/p>\n
The government has been subsidizing important items including
\nfuel.<\/p>\n
There has been suggestions that the government must gradually
\nreduce expensive fuel subsidies to lessen the burden on the state
\nbudget.<\/p>\n
But lowering subsidies is easier said than done, as such a
\nmeasure could create massive unrest.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-mulls-basing-budget-on-calender-year-1447893297",
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