House members criticize govt for 'over-spending'<\/p>\n
JAKARTA (JP): The Indonesian Democratic Party (PDI) and the
\nMoslem-dominated United Development Party (PPP) have criticized
\nthe government for its over-spending during the 1994-1995
\nfinancial year.<\/p>\n
Both the PDI and the PPP factions of the Budgetary Commission
\nof the House of Representatives (DPR) said in a hearing with
\nMinister of Finance Mar'ie Muhammad that the government had spent
\ntoo much because it had lacked consistency in implementing the
\nnational budget.<\/p>\n
Revenues and spending for the 1994-1995 budget had been
\nexpected to balance at Rp 69.74 trillion (US$31.4 billion) but,
\nas it turned out, there were several changes in both revenues and
\nspending.<\/p>\n
Total expenditure is estimated to have exceeded the original
\nplan by 3.72 percent, reaching Rp 72.34 trillion, while revenues
\nare believed to have surpassed the initial target by about 3.74
\npercent, to reach Rp 72.35 trillion.<\/p>\n
Budgetary revisions are, under Indonesian law, subject to the
\nHouse's approval.<\/p>\n
Marwan Adam, a PDI spokesman, said that his party had to
\napprove the revised budget despite its objections because, under
\nthe existing budgetary procedures, details of revenues and
\nspending were not presented during deliberation on budgetary
\nrevision.<\/p>\n
\"How can we audit the state budget if no details are available
\nabout the revenue and expenditure sides of the budget,\" he said.<\/p>\n
The PDI, which is Indonesia's smallest but most vocal
\npolitical party, has campaigned for several years for a change in
\nbudgetary procedures under which the legislature would be
\nprovided with details of government spending.<\/p>\n
Under the current budgetary system, the government is obliged
\nto disclose only a general outline of expected annual revenues
\nand spending.<\/p>\n
Fraud<\/p>\n
The PDI faction said the present budgetary procedures were
\nvulnerable to fraud because House members had no access to
\ninformation which would allow them to check whether or not the
\nbudget had been correctly implemented.<\/p>\n
Sa'di Zen, a PPP spokesman, said that over-spending could be
\nengineered if the government wished to benefit from a surplus on
\nthe revenue side.<\/p>\n
\"If the projection was correct, then spending has not been in
\naccordance with the plan,\" he said.<\/p>\n
Minister Mar'ie said that the higher-than-expected state
\nrevenues were possible because receipts from both domestic
\nsources and foreign loans had exceeded the budgetary target.<\/p>\n
According to the 1994-1995 budget, the government expected to
\nobtain Rp 66.2 trillion from domestic sources and Rp 11.76
\ntrillion from foreign aid.<\/p>\n
The minister said that routine spending is now estimated to
\nhave exceeded the original plan by two percent, to reach Rp 43.17
\ntrillion, partly as a result of higher-than-expected spending on
\npersonnel.<\/p>\n
Government spending on debt servicing also exceeded the target
\nby 2.5 percent, to Rp 18.42 trillion, Mar'ie said.<\/p>\n
The minister said that the higher-than-expected debt-servicing
\nspending had been caused by the early repayment of some high-
\ninterest foreign loans.<\/p>\n
He said that other spending was estimated to reach Rp 204
\nbillion, around 61.2 percent less than the budget target.<\/p>\n
The 1993-1994 budget was marred by a deficit of nearly Rp 1.8
\ntrillion, the result of an unexpectedly large increase in the
\ngovernment's routine spending, combined with an 0.5 percent drop
\nof oil and gas revenues due, in turn, to a drop in oil prices.
\n(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-members-criticize-govt-for-over-spending-1447893297",
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