Sutiyoso proposes 56% increase in new budget<\/p>\n
JAKARTA (JP): Governor Sutiyoso submitted to the City Council
\non Wednesday a draft city budget for the upcoming 1999\/2000
\nfiscal year worth Rp 2.74 trillion, a 56 percent increase from
\nthe current budget of Rp 1.75 trillion.<\/p>\n
The governor told the council's plenary session that the draft
\nwas designed with the assumption of 5.41 percent negative
\neconomic growth and inflation between 15 percent and 20 percent
\nthroughout the budget period.<\/p>\n
According to Sutiyoso, the significant increase in the draft
\nbudget was mainly supported by the estimated Rp 1.26 trillion in
\nlocal revenue, with income from regional taxation as its prime
\ncomponent.<\/p>\n
The figure is 54.72 percent higher than the estimated tax
\nrevenue for the current fiscal year, he said.<\/p>\n
The other income for the budget would include the central
\ngovernment's grant of Rp 1.23 trillion and a possible surplus of
\nRp 246 billion from the 1998\/1999 budget, Sutiyoso said.<\/p>\n
\"The assumption (of the significant increase in the draft
\nbudget) is mainly based on the city's intensifying efforts in
\ncollecting various regional taxes, such as those on vehicles,
\ntransfers of vehicle ownership, fuel, hotels and restaurants,\" he
\ntold the council.<\/p>\n
\"We should also be thankful that the central government is
\nabout to raise its fund allocation (to the Jakarta
\nadministration) by 34.37 percent to Rp 1.23 trillion, which is
\nmainly due to the planned increase of civil servants' salaries,\"
\nthe governor said.<\/p>\n
Unlike in previous years, the media were not given copies of
\nthe draft budget.<\/p>\n
According to Sutiyoso, revenue from taxes collected on vehicle
\nsales is estimated to increase by 55.73 percent to Rp 350 billion
\nfor the fiscal year, vehicle ownership tax revenue will rise by
\n45.18 percent to Rp 200 billion, and tax on hotels and
\nrestaurants will bring Rp 168 billion, a 58.38 percent increase.<\/p>\n
The biggest increase has been predicted by Sutiyoso to come
\nfrom tax on entertainment, such as movie theaters, bars,
\ndiscotheques and massage parlors.<\/p>\n
His administration estimated that the entertainment tax
\nrevenue would jump to Rp 36 billion in the next fiscal year, an
\n80 percent increase from the current budget.<\/p>\n
The governor said that some city-owned companies, including
\nthe PDAM Jaya water company, the PT Pembangunan Jaya construction
\ncompany and the PT Delta Jakarta brewing company, might not be
\nable to give financial contributions to the city because of the
\neconomic crisis, which has shrunk the value of the assets of most
\nof the companies.<\/p>\n
According to Sutiyoso, Rp 2.06 trillion of the proposed budget
\nwill be allocated for the city's routine expenditure, while the
\nremaining Rp 683 billion would be spent on development.<\/p>\n
The greatest portion of the routine expenditure, Rp 905
\nbillion, would go to paying the wages of city employees.<\/p>\n
This is followed by expenses of operational equipment (Rp 421
\nbillion) and maintenance (Rp 310 billion), Sutiyoso said.<\/p>\n
The development expenditure was allocated to 20 sectors in the
\ndraft budget, mainly focusing on the ongoing social safety net
\nprogram, which included the supply and distribution of food, job
\nopportunities and the development of small and medium businesses
\nin the capital.<\/p>\n
The money would be allotted to housing and resettlement
\nprograms (Rp 84 billion), transportation (Rp 72.65 billion),
\nwater and irrigation (Rp 72.87 billion), social and cultural
\nprograms (Rp 78.24 billion) and state apparatuses and control (Rp
\n78.10 billion).<\/p>\n
Many of the city councilors warmly welcomed the draft budget.
\nSome of them were even optimistic that the administration could
\nachieve its targets.<\/p>\n
Even the current austerity budget also resulted in a surplus,
\nsupporters said.<\/p>\n
But some councilors questioned the reasons behind the city-
\nowned companies being exempted from contributing to the city's
\nrevenue.<\/p>\n
Head of the Indonesian Democratic Party faction in the council
\nLukman Mokoginta said it was impossible that big companies such
\nas PT Pembangunan Jaya were unable to make a contribution.<\/p>\n
\"It is a big diversified company,\" he said.<\/p>\n
Deputy head of the United Development Party faction Ali Imran
\nHusein said the companies should have first been audited to prove
\ntheir inability.<\/p>\n
\"I promise that our faction will question the matter further,\"
\nhe said. (ind)<\/p>",
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