1997/1998 state budget revised

JAKARTA (JP): The government has revised the 1997/1998 budget to Rp 132 trillion from its earlier projection of Rp 101 trillion due to the rupiah's steep depreciation against the U.S. dollar.

Finance Minister Mar'ie Muhammad reported to the House of Representatives yesterday the current budget was estimated to end next month with a surplus of Rp 456 billion resulting from total revenues of Rp 132 trillion and total outlays of Rp 131.5 trillion.

"Internal revenue is estimated at Rp 132 trillion, up 23 percent from the original plan largely due to the significant rise in oil and gas tax revenues and in receipts from foreign aid," Mar'ie said.

The finance minister yesterday submitted the government's amendments of the 1997/1998 state budget to the House, a constitutional requirement.

The revisions consisted mostly of revenue and spending changes due to the rupiah's depreciation. Mar'ie, however, did not specify the rupiah rate against the dollar on which the budget revision was based.

"Receipts from oil and natural gas taxes will increase by 137.8 percent (from the original budget) to Rp 35.35 trillion and those from foreign aid by 82.8 percent to Rp 23.8 trillion," he said.

Revenue from non-oil taxes is estimated to decline by 0.5 percent to Rp 72.82 trillion due mainly to a 2.3 percent decrease in income tax receipts.

The biggest increase in expenditures is estimated to fall under foreign debt servicing and fuel and fertilizer subsidies.

Foreign debt servicing is envisaged to increase by 45 percent to Rp 28 trillion.

The budget projects the government will have spent Rp 15.8 trillion subsidizing fuel prices instead of taking in Rp 250 billion in revenues from the domestic fuel market as originally estimated.

Fertilizer subsidies are increased to Rp 547.3 billion. (08/vin)