House approves higher proposed spending<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The House of Representative's Budget Committee finally approved
\non Thursday the basic assumptions for the 2006 state budget,
\naccommodating the government's last-minute proposal of higher
\nspending to stimulate economic growth of 6.2 percent.<\/p>\n
The Committee, however, only approved Rp 4 trillion (US$400.8
\nmillion) in additional expenditure for such labor-intensive,
\ndevelopment projects as road construction and school building
\nrepairs, from the government's proposed Rp 5 trillion and Rp 10
\ntrillion in unspent projects to be carried over from this year's
\nbudget.<\/p>\n
With the additional spending, total expenditure for next year
\nwill amount to Rp 647.6 trillion -- some 15 percent higher than
\nthe Rp 559.2 trillion initially proposed -- which includes Rp
\n54.3 trillion for fuel subsidies.<\/p>\n
The country's gross domestic product (GDP), meanwhile, is
\nexpected to grow by 6.2 percent to Rp 3,041 trillion next year,
\nfrom the initially proposed Rp 2,996 trillion, and the
\ncommittee's previous deliberation of a 6.1 percent growth to Rp
\n3,032 trillion.<\/p>\n
On the revenue side, the government expects to rake in Rp
\n625.2 trillion in total revenue, with Rp 416.3 trillion in tax
\nincome forming the bulk of it.<\/p>\n
The budget deficit was agreed at Rp 22.4 trillion, at a
\nsustainable 0.7 percent of GDP, as compared to the government's
\nlast proposal of 1.1 percent.<\/p>\n
All the figures still have to be approved by a House plenary
\nsession scheduled for Friday.<\/p>\n
Prior to the approval, several legislators questioned a sharp
\n57-percent increase in the Presidential budget, which was said to
\nbe for the purchasing of a new Presidential aircraft.<\/p>\n
The Indonesian Democratic Party of Struggle (PDI-P) faction
\nchairman Tjahjo Kumolo said the faction would make its opposition
\nknown to the hike during the plenary session.<\/p>\n
Minister of Finance Jusuf Anwar clarified the issue, saying
\nthe budget's initial proposal never mentioned an aircraft
\npurchase, but only its lease and maintenance cost, and that any
\nstatement about it from his staff member was a \"slip of the
\ntongue\".<\/p>\n
Jusuf further said that the 57 percent increase came from the
\nfact that the Presidential budget is now combined with
\nmiscellaneous expenditure.<\/p>\n
\"If we only take into account the Presidential budget alone,
\nthen the increase will only be 26 percent, and I think that is
\nstill appropriate due to rising costs from rising fuel prices,\"
\nhe said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-approves-higher-proposed-spending-1447893297",
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