House wants next budget to rise 13%<\/p>\n
JAKARTA (JP): The House of Representatives' Budgetary
\nCommission yesterday proposed raising the 1997\/1998 budget by 13
\npercent on this year's budget to Rp 102 trillion (US$43.1
\nbillion).<\/p>\n
The commission, at the conclusion of its three-day hearing
\nwith Minister of Finance Mar'ie Muhammad, also approved the
\ngovernment's budget accounts for the first half of the 1996\/1997
\nfiscal year, which will end next March.<\/p>\n
The government's accounts for the April-September period show
\na surplus of Rp 700 billion (US$295.9 million).<\/p>\n
The commission endorsed the government's projected Rp 100
\nbillion surplus for the second half of the fiscal year.<\/p>\n
"We hope that the surplus can be maintained and even
\nincreased," the meeting's chairman, I GDE Artjana, said.<\/p>\n
Mar'ie said earlier that although the budget followed
\nbalanced-budget principles the government would do its best to
\nproduce a surplus every year to reduce its dependence on foreign
\nloans.<\/p>\n
"In the current era of globalization, where the roles of
\ninvestment banks, mutual funds and fund managers are getting more
\ndominant than government's, it is very important for us -- the
\ngovernment -- to produce budget surpluses," Mar'ie said.<\/p>\n
Three of the commission's four factions -- the Armed Forces,
\nthe ruling Golkar and the United Development Party -- proposed
\nthat the government's budget for the next fiscal year balance at
\nabout Rp 102 trillion (US$43.1 billion), or 13 percent higher
\nthan the current budget of Rp 90.6 trillion.<\/p>\n
The other faction, the Indonesian Democratic Party, suggested
\nnext year's budget should be pushed up even more, by 20 percent,
\nto Rp 108 trillion.<\/p>\n
All four factions based their proposals on similar
\nassumptions: oil prices remaining at their current levels,
\ncontinuing inflow of official foreign loans and steadily
\nincreasing tax revenues.<\/p>\n
The Armed Forces' factional spokesman, Herman Hidayat,
\nprojected that Indonesia's crude oil prices would average $16.5 a
\nbarrel next fiscal year, receipts from official foreign loans
\nwould reach Rp 13.4 trillion and tax revenues would rise 12
\npercent from the current budget target of Rp 55.99 trillion.<\/p>\n
The faction proposed the 1997\/1998 budget should be 14.5
\npercent larger, at Rp 103 trillion, than the current budget.<\/p>\n
The Golkar factional spokeswoman, Mubha Kahar Muang, predicted
\nthe government's domestic revenue from oil and gas would increase
\nslightly to Rp 15 trillion for the next financial year from Rp
\n14.1 trillion for the current budget.<\/p>\n
The faction projected domestic revenues from non-oil and gas
\nsectors, including tax and non-tax income, would reach Rp 75.6
\ntrillion, up from Rp 64.08 trillion for the current budget.<\/p>\n
It proposed the 1997\/1998 budget should balance at Rp 102.3
\ntrillion.<\/p>\n
The factional spokesman for the United Development Party,
\nSa'di Zen Noor, forecast that Indonesia's oil prices would
\naverage between $17 and $18 a barrel next fiscal year, revenue
\nfrom official foreign loans would remain at its current level of
\nRp 12.4 trillion and tax revenue would increase 20 percent from
\nthe current budget.<\/p>\n
The faction proposed the 1997\/1998 budget should balance at Rp
\n102.7 trillion.<\/p>\n
Marwan Adam of the Indonesian Democratic Party faction said
\nthe government could further increase tax receipts since the
\ncountry's tax ratio to gross domestic product was low compared
\nwith those of neighboring countries.<\/p>\n
The faction was therefore optimistic the budget for the next
\nfiscal year could balance at Rp 108 trillion, more than 20
\npercent higher than the current budget of Rp 90.6 trillion. (rid)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/house-wants-next-budget-to-rise-13-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }