State budget for 1996\/1997 approved<\/p>\n
JAKARTA (JP): The Budgetary Commission of the House of
\nRepresentatives (DPR) yesterday approved the government's budget
\nplan for 1996\/1997 without making any changes but with a strong
\nappeal for the improvement of discipline in its implementation.<\/p>\n
The budget plan, to be implemented at the start of the new
\nfiscal year in April, is scheduled to be formally approved by the
\nHouse in a plenary meeting on Feb. 29.<\/p>\n
The four factions of the commission -- the Moslem-dominated
\nUnited Development Party (PPP), the Golkar ruling party, the
\nIndonesian Democratic Party (PDI) and the Armed Forces -- asked
\nthe government to improve its budgetary discipline in their final
\nview of the budget plan.<\/p>\n
A PPP spokesman, Muchsin, said that the government should
\nconsistently uphold the balanced budget principle to prevent any
\ndeficit in the future.<\/p>\n
\"The deficit, which occurred in the last three fiscal years,
\nshould not occur again,\" the spokesman said yesterday at the
\nclose of the four-day deliberation on the budget plan.<\/p>\n
He said that expenditure should not exceed revenues expected
\nto be received by the government during the next fiscal year even
\nthough the government has set aside budgetary reserves to finance
\na possible deficit.<\/p>\n
The revenues and expenditures in the 1996\/1997 budget plan are
\nset equally at Rp 90.61 trillion (US$39.5 billion), 16 percent
\nhigher than Rp 78.02 trillion budgeted in the current 1995\/1996
\nfiscal year, which will end next month.<\/p>\n
Muchsin said that his party praised the government's measures
\nin the last two years to speed up the repayment of loans carrying
\ninterest rates of over 10 percent per annum.<\/p>\n
Using the proceeds from the sales of the government's shares
\nin state-owned firms for the prepayment of high-interest loans is
\nan appropriate step to minimize the country's dependency on
\nforeign loans, he said.<\/p>\n
The government's revenues from foreign aid, under the
\n1996\/1997 budget plan, are expected to be Rp 12.41 trillion
\n($5.41 billion), which will account for 13.67 percent of its
\ntotal revenues of Rp 90.61 trillion.<\/p>\n
The PDI faction also called on the government to reduce its
\ndependence on foreign aid by raising its revenues from domestic
\nsources.<\/p>\n
The domestic revenues, according to the budget plan, are
\nprojected to reach Rp 78.2 trillion, comprising Rp 14.12 trillion
\nfrom the oil and gas sector and Rp 64.08 trillion from non-oil
\nsectors.<\/p>\n
PDI spokesman Marwan Adam said that the government's
\nprojection of receipts of Rp 56 trillion from non-oil tax
\npayments in 1996\/1997 is too pessimistic, given the existing tax
\nrevenue potential.<\/p>\n
He said that the low target would not only make tax officials
\nless active but could also encourage them to collude with
\ntaxpayers wanting to avoid tax payments.<\/p>\n
The PDI faction also paid serious attention to the alleged use
\nof the government's funds for activities which are not included
\nin the state budget plan.<\/p>\n
\"We are all aware that there have been so many non-budgetary
\ntransactions which are not reported to the House,\" he said. \"How
\ncould the House members carry out their mission of supervision,
\nif they have no access to such information,\" he added.<\/p>\n
He said that the increase in the financing of non-budgetary
\nactivities would automatically lessen the function of the budget
\nas a controller of the state's assets.<\/p>\n
Marwan said that the government actually has many sources of
\nincome to finance non-budgetary activities, such as from the
\ncontroversial reforestation funds and levies imposed by certain
\nministries.<\/p>\n
He said the PDI faction has consistently urged the government
\nto include such sources of incomes in the state budget. \"But our
\ndemand has always been turned down,\" he said. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-budget-for-19961997-approved-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}