Loan and interest payments above budget<\/p>\n
JAKARTA (JP): Loan and interest payments during the current
\nfiscal year ending in March are estimated to reach Rp 21.43
\ntrillion (US$9.37 billion) or 17.7 percent more than the budgeted
\ntotal of Rp 18.21 trillion, Minister of Finance Mar'ie Muhammad
\nsaid yesterday.<\/p>\n
Mar'ie told the House of Representatives that the unexpectedly
\nhigh payments were due to a faster realization of domestic and
\nforeign loan repayments.<\/p>\n
The repayment of domestic debts is estimated to reach Rp 1.78
\ntrillion, compared to the budgeted amount of only Rp 318.8
\nbillion, due to the reimbursement of Rp 1.5 trillion in net
\nprofits from domestic oil fuel sales which were overpaid to the
\ngovernment by the state-owned Pertamina oil company in fiscal
\n1993-1994.<\/p>\n
\"The higher debt repayments and service burdens were also
\ncaused by the early payment of high-interest foreign loans from
\ninternational organizations,\" he said.<\/p>\n
He noted that such early payment was made possible by the
\nfloating of the state-owned telecommunication company PT Telkom
\nand the state owned tin company PT Timah on foreign stock
\nexchanges.<\/p>\n
According to the minister, the early payment of high-interest
\nloans is part of the government's effort to decrease its
\nfinancial burdens and to improve the country's balance of
\npayments.<\/p>\n
He noted that during the current fiscal year, other routine
\nexpenditures are estimated to reach Rp 2.12 trillion or three
\ntimes as large as the budgeted amount.<\/p>\n
The increase was generated by the reclassification of
\nexpenditures for the pre-shipment inspection service from
\ndevelopment to routine expenditures.<\/p>\n
Previously, payments for the pre-shipment inspection were
\naccounted for in the development expenditures.<\/p>\n
Mar'ie added that the current state budget which was
\noriginally envisaged to balance at Rp 78.02 trillion (US$34.06
\nbillion) is estimated to increase, bringing state revenues up to
\nRp 82.72 trillion and spendings to Rp 82.35 trillion.<\/p>\n
\"That means the current budget will end in March with a
\nsurplus of Rp 375.3 billion,\" he said when he briefed the House
\non the preliminary estimates on the realization of the budget.<\/p>\n
Mar'ie said that domestic revenues will account for Rp 71.55
\ntrillion of the Rp 82.72 trillion total revenues or eight percent
\nmore than estimated in the budget.<\/p>\n
He said the increase was due to unexpectedly high tax
\nreceipts.<\/p>\n
Mar'ie said that revenues from oil and gas are estimated to
\nreach Rp 14.84 trillion, or 11.8 percent more than the budget
\nestimate, as the average price of Indonesian oil on the
\ninternational market hit $17.3 per barrel, or 80 U.S. cents more
\nthan originally estimated.<\/p>\n
Meanwhile, tax receipts from the non-oil and gas sectors are
\nexpected to reach Rp 56.71 trillion, or 7 percent more than
\nestimated.<\/p>\n
In the current fiscal year, tax revenues -- which consist of
\nincome tax, value-added tax, property tax, import duty, custom
\nand excise and export taxes -- are estimated at Rp 48.42
\ntrillion, which is 7.5 percent more than the budget target.<\/p>\n
Non-tax revenues -- consisting of various service fees,
\ndividends from state companies and profits from domestic oil fuel
\nsales -- are estimated to reach Rp 7.8 trillion or 20.2 percent
\nmore than the budget target.<\/p>\n
As a result of higher oil prices on the international market
\nin the current fiscal year, net earnings from oil are expected to
\nreach Rp 487.6 billion, or 33.1 percent less than estimated.<\/p>\n
Mar'ie said receipts from foreign loans are expected to reach
\nRp 11.17 trillion or 5 percent less than the budget target.<\/p>\n
Meanwhile, actual expenditures for fiscal 1995\/96, which
\nconsist of routine expenditures and development spendings, are
\nestimated at Rp 82.35 trillion.<\/p>\n
Routine expenditures are estimated to run at Rp 52.54
\ntrillion, or 11.2 percent more than expected, and development
\nexpenditures (investment) at Rp 29.81 trillion, or 3.2 percent
\nless. (13\/pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/loan-and-interest-payments-above-budget-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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