City expects tax surplus to boost 2005 budget

Bambang Nurbianto, The Jakarta Post/Jakarta

The last-minute shenanigans over the 2005 city draft budget continued on Tuesday, with the Jakarta administration saying total spending was now projected to rise Rp 170 billion (US$18.28 million) to Rp 14 trillion next year, without explaining what the spending was for.

The announcement came a day after the city projected a surprise budget deficit for 2005 of Rp 1.2 trillion -- from an unexpected shortfall in unspent budget for this year.

In the draft 2005 budget, the administration had allocated some Rp 1.9 trillion in revenue from this year's unspent budget. It said on Monday its latest calculations revealed the unspent money amounted to only Rp 700 billion. It did not explain why the amount had changed.

To cover the deficit, the administration plans to cut costs and try to boost its revenue. Councillors debating the draft are likely to recommend reductions in the funding of the city's Persija soccer team, the establishment of the Jakarta Ombudsmen Commission and the operational costs of five municipalities.

Automotive taxes and income taxes are also expected to contribute more to the city's coffers.

Assistant to the city secretary for economic affairs Ma'mun Amin said this year's budget surplus amounted to Rp 500 billion and would also be used to cover part of the deficit.

"This year's budget was set at Rp 12.5 trillion. But this morning, total revenue (for this year) reached Rp 13 trillion," he said.

Chairman of City Council's Commission C for financial affairs Daniel Abdullah Sani said automotive taxes, entertainment taxes and profits from city owned enterprises would be other sources of additional revenues.

The administration has insisted that allocations for high- priority programs should not be reduced, including the construction of the East Flood Canal, the new busway corridors and the establishment of incineration plant project.

The last-minute change of the budget draft prior to the Dec. 31 deadline has made several councillors furious.

Councillor Dani Anwar of the Prosperous Justice Party faction said contradictory information from different city officials had confused the councillors.

"I had just received information from the assistant to the city secretary for financial affairs this morning that it was unlikely (we could) increase city revenue to cover the deficit. But just now, another official from the city revenue agency made a completely different statement," he said.

Golkar Party faction leader Inggard Joshua said the draft budget deliberation should be prolonged until the problems with the figures were sorted out.