President to unveil 2001 budget on Oct. 2<\/p>\n
JAKARTA (JP): President Abdurrahman Wahid is expected to
\ndeliver the 2001 budget draft to the House of Representatives
\n(DPR) on Oct. 2, House media relations department head Iskandar
\nBasri said on Friday.<\/p>\n
Iskandar said that the President would deliver a speech in a
\nplenary session to be chaired by House Speaker Akbar Tandjung.<\/p>\n
Government officials have predicted the 2001 state budget,
\nwhich runs from January to December, will have a deficit of
\naround Rp 53 trillion (US$6.39 billion), compared to the
\nestimated Rp 44 trillion deficit in the current April-December
\n2000 budget.<\/p>\n
The deficit will be financed by foreign loans and proceeds
\nfrom the country's privatization program and sales of assets
\nunder the Indonesian Bank Restructuring Agency.<\/p>\n
The government is scheduled to meet with the country's
\ntraditional donors grouped in the Consultative Group on Indonesia
\nsome time in the middle of next month in Tokyo to seek for some
\n$4.8 billion of loans.<\/p>\n
But the recent killing of United Nations humanitarian workers
\nby East Timorese militias in Atambua, West Timor, means the
\ngovernment will have a hard time persuading donors to agree to
\nbadly needed loans.<\/p>\n
Government officials have said that government spending in the
\nupcoming state budget was projected to reach Rp 283.3 trillion,
\nwhile domestic revenues only amount to Rp 230.3 trillion,
\nresulting in the Rp 53 trillion deficit.<\/p>\n
Officials said that the largest spending would go on servicing
\ngovernment domestic and foreign debt.<\/p>\n
The domestic debt has arisen from the interest rate of the
\ngovernment bonds issued to help finance the country's bank
\nrecapitalization program.<\/p>\n
The next budget assumes 4 percent to 5 percent rate of
\neconomic growth, an inflation rate of between 6 percent and 8
\npercent, oil prices of $17-$22 per barrel, and an exchange rate
\nof Rp 6,800-Rp 7,800 per U.S. dollar.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/president-to-unveil-2001-budget-on-oct-2-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}