State revenues estimated to exceed target<\/p>\n
JAKARTA (JP): State revenues during the current fiscal year
\n(1995-1996) are estimated to exceed the set target by 3.6 percent
\nor Rp 2.8 trillion (US$1.2 billion), it was concluded yesterday
\nin a hearing between the Ministry of Finance and the House
\nBudgetary Commission.<\/p>\n
The figure is based on actual receipts from taxes and other
\nlevies and foreign loans during the first semester (April through
\nSeptember) of the current fiscal year and an expected rise in
\nrevenues during the next semester, said the commission's
\nchairman, I Gde Artjana, of the Armed Forces faction on the last
\nday of the four-day hearing.<\/p>\n
According to the budget plan, government revenues are
\nestimated at Rp 78.02 trillion.<\/p>\n
During the first semester of the current fiscal year, revenues
\nfrom oil and gas reached Rp 7.4 trillion, or 55 percent of the
\nwhole year's target. This was due to the average oil price of
\nUS$17.27, higher than the targeted $16.50 per barrel.<\/p>\n
Tax receipts from the non-oil sectors amounted to Rp 20.06
\ntrillion, or 44.6 percent of the target, and other revenues
\nreached Rp 1.09 trillion or 16.9 percent of the target.<\/p>\n
Foreign loan disbursements during the first semester amounted
\nto Rp 5.62 trillion, or 47.8 percent of the target. In the second
\nsemester, foreign loans are expected to be Rp 6.1 trillion.<\/p>\n
Despite the encouraging development, the House members warned
\nthe government of various possibilities that could destabilize
\nthe budget plan in the second semester.<\/p>\n
The Indonesian Democratic Party (PDI) faction, for example,
\nnoted that oil supplies from non-OPEC producing countries, such
\nas countries of the former Soviet Union, had started to enter the
\ninternational markets.<\/p>\n
\"This could lead to a drop in oil prices,\" the PDI faction
\ncautioned.<\/p>\n
The faction also noted that the large current account deficit
\nin the first semester showed that the export promotion had failed
\nto increase exports to the desired level.<\/p>\n
\"In fact, during the last few years, the growth rate of
\nexports of non-oil products has been declining,\" said Gusti Ayu
\nEka Sukmadewi, a spokeswoman for PDI.<\/p>\n
The government said that the larger deficit was partly caused
\nby the increase in imports of capital goods for foreign and local
\ninvestment projects.<\/p>\n
But the PDI faction argued that there is no indication that
\nsuch imports will increase exports.<\/p>\n
The Golkar faction stressed the need for better coordination
\nand supervision among government agencies in pursuing development
\nprograms.<\/p>\n
\"Besides, the government should eliminate all economic
\ndistortions, such as protection, monopoly and oligopoly that have
\ncaused the high costs of economy,\" said Boy Musbar Nurmawan of
\nthe Golkar faction.<\/p>\n
Next year<\/p>\n
At the last day of the hearing, all four factions of the
\ncommission came up with different figures on the next budget plan
\n(1996-1997).<\/p>\n
The Golkar faction estimated that the 1996-1997 budget plan
\nwill balance at Rp 91 trillion, an increase of Rp 13 trillion or
\n16.6 percent from the current budget plan that was set at Rp
\n78.02 trillion.<\/p>\n
The faction of the United Development Party (PPP) projected
\nthe next state budget to balance at about Rp 89.5 trillion. The
\nfigure was based on the assumption that internal revenues will
\nincrease by 20 percent to Rp 77.8 trillion but foreign loans will
\nremain at the same level as in the current budget.<\/p>\n
The Armed Forces faction estimated the next budget to balance
\nat Rp 91 trillion, an increase of Rp 12.8 trillion or 16.6
\npercent.<\/p>\n
Of all the factions, the PDI faction made the highest budget
\nprojection, expecting the next budget to balance at Rp 94
\ntrillion, an increase of 20 percent from the current budget.<\/p>\n
The next budget plan is based on the target growth of 7.1
\npercent and the average oil price of $16.50 per barrel.<\/p>\n
The commission also noted that the 1996-1997 budget plan
\nshould be devised in such a way that it will maintain economic
\nstability and will further enhance a more equitable distribution
\nof income.<\/p>\n
The commission also asked the government to continue economic
\nreform measures in the next fiscal year.(13)<\/p>",
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