Smaller state budget expected<\/p>\n
JAKARTA (JP): The government is preparing a state budget which
\nwill likely be smaller than previous years as a result of the
\nfinancial crisis afflicting the country.<\/p>\n
State Minister of National Development Planning Ginandjar
\nKartasasmita revealed yesterday that the next budget would not
\nexceed the current 1997\/1998 budget of Rp 101.1 trillion.<\/p>\n
\"We expect the forthcoming 1998\/1999 budget will not increase
\nor will not be as big as previous years,\" Ginandjar said after an
\nhour long meeting with President Soeharto at his residence on Jl.
\nCendana, Central Jakarta.<\/p>\n
Ginandjar said Soeharto, who was accompanied by his eldest
\ndaughter Siti Hardiyanti Rukmana, had instructed the government
\nto propose \"a realistic and transparent\" budget to the House of
\nRepresentatives in consideration of the ongoing economic crisis.<\/p>\n
The current fiscal year will end on March 31, 1998. The new
\nbudget is due to be presented by Soeharto to the House in the
\nfirst week of January.<\/p>\n
\"The budget draft must be as realistic and as transparent as
\npossible. If the situation is difficult, it must be reflected in
\nthe budget. We do not need to cover-up the situation which can
\ncause misleading interpretations on our economic situation,\"
\nGinandjar quoted Soeharto as saying.<\/p>\n
The current state budget stands at Rp 101.1 trillion (US$23.5
\nbillion), up 11.6 percent from the 1996\/1997 budget.<\/p>\n
The government had projected earning Rp 15.12 trillion from
\nthe oil and natural gas sector, and Rp 73.18 trillion from nonoil
\nand gas exports.<\/p>\n
But it will be hard for the government to reach this target,
\nespecially after the Minister of Finance Mar'ie Muhammad revealed
\nlast month that only 26.8 percent of the target revenue from the
\nnonoil and gas sector was achieved.<\/p>\n
The primary reason for a contractive budget is the plunge in
\nthe value of the rupiah.<\/p>\n
When the House passed the budget in February, the rupiah stood
\nat about 2,400 against the dollar. Now, it has dropped to about
\n4,300.<\/p>\n
\"We are still calculating the projection on our economic and
\ninflation growths... and another important parameter is the
\nestimated exchange rate of rupiah against the dollar,\" Ginandjar
\nsaid.<\/p>\n
He said the government was doing its best to stabilize the
\ncurrency, but admitted that it would not be realistic to expect
\nit to go below Rp 3,000.<\/p>\n
Ginandjar, also chairman of the National Development Planning
\nBoard (Bappenas), said the government would continue to
\nprioritize poverty alleviation, the development of economic
\ninfrastructure and the education and health sectors.<\/p>\n
\"We will also prioritize the agriculture sector, especially on
\nfoodstuff because we must maintain our self-sufficiency in rice,\"
\nhe added.<\/p>\n
According to Ginandjar, Soeharto believes next year's budget
\nwill remain under the shadow of the monetary crisis and this
\nyear's long drought.<\/p>\n
\"The President said the ongoing monetary turmoil has caused
\nrising unemployment, especially for unskilled workers. Therefore,
\nlabor-intensive projects will be provided in cities and in rural
\nareas especially in Jakarta,\" said Ginandjar.<\/p>\n
Ginandjar acknowledged that it would be more difficult for the
\ngovernment to maintain its revenues from the tax sector due to
\nthe economic slump.<\/p>\n
He hinted that the government might use some parts of the
\nUS$23 billion loan package from the International Monetary Fund
\nto compensate its declining revenue in next year's budget. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/smaller-state-budget-expected-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}