The House of Representatives on Tuesday (28\/8\/07) approved the midyear revisions to the 2007 budget, which see a downsizing in anticipated government revenue and spending, a wider deficit, additional funds for bureaucracy reform and a new cooking oil subsidy, reported The Jakarta Post.<\/p>\n
The subsidy, intended to shield poor households from the effects of higher cooking oil prices, will amount to Rp325 billion ($36 million), while the additional money earmarked for helping fix the bureaucracy -- mostly in the form of pay rises in the Finance Department -- comes to Rp1.46 trillion.<\/p>\n
The revised budget also sees a bigger subsidy for state power firm, PT PLN, at Rp32.4 trillion, but lower fuel subsidy spending of Rp55.6 trillion.<\/p>\n
Legislators agreed that the two new allocations be included in this year's total government spending, which saw a 1.4% cut to Rp752.4 trillion ($83 billion).<\/p>\n
The 2007 revised budget still sees the economy growing by 6.3%, inflation is predicted to continue slowing to 6%, while the rupiah is forecast to average Rp9,050 against the US dollar, and the central bank benchmark interest rate at 8%.<\/p>\n
All of the House's 10 factions approved the budget revisions, subject to supplementary comments.<\/p>\n
"This year's 6.3% growth should be of higher quality, in the sense that it should create millions of new jobs, and be built on 3.3% growth in the agricultural sector and 8.5% growth in the manufacturing industry," budget committee chairman Emir Moeis said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/revised-budget-includes-cooking-oil-subsidy-1188818292", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }