City proposes Rp 7.49 trillion budget for 2001
City proposes Rp 7.49 trillion budget for 2001
JAKARTA (JP): Governor Sutiyoso unveiled on Tuesday an
optimistic draft City budget for 2001, which was set at Rp 7.49
trillion (US$788.42 million).
Speaking before a plenary City Council session, Sutiyoso
projected 2.91 percent in economic growth for the coming 12-month
period as part of the economic upturn in the capital.
"The current indicators show that Jakarta's economy is
improving. However, the size of the budget very much depends on
the security situation in the capital," Sutiyoso told the session
presided over by City Council Speaker Edy Waluyo.
The implementation of Law No. 25/1999 on the financial balance
between the central and regional government will give the city a
revenue windfall amounting to Rp 3.29 trillion.
The law stipulates that the city will earn half of the
government revenue from land and building taxes, employees'
income taxes and taxes imposed on the transfer of property
ownership, which altogether will increase the city's revenue by
nearly Rp 1.68 trillion.
The central government will also provide some Rp 1.515
trillion in a general allocation fund, which will be disbursed
mostly to pay salaries of civil servants.
Sutiyoso said the city will increase original revenues coming
from taxes imposed, among others, on the transfer of vehicle
ownership and vehicle ownership taxes to Rp 3.05 trillion, or
almost half of the total income.
In the 2000 budget that covers a nine-month period, taxes
contributed some Rp 1.72 trillion to city revenue.
Sutiyoso said the hike was a logical result of the difference
in the budget period, improvement in economic conditions and the
booming purchase of imported cars.
The January-December 2001 budget will be the country's first
calendar-year budget. The current April-December 2000 budget is a
transitional one compared to previous fiscal years running from
April 1 to March 31.
Spending
On spending, the city administration allocated some Rp 5.02
trillion for routine expenditure and the rest for developmental
expenditure.
"The improvement of all city facilities and public services,
the employment of 50,000 civil servants from the dissolved
ministries and the plan to increase the allowances of all city
employees will dominate the routine expenditure," Sutiyoso said.
He said the city will speed up the construction of two
flyovers in Kalibata, South Jakarta, and Pramuka, East Jakarta,
as well as reparation of some streets in the capital.
The city also plans to establish a bus lane in the capital's
main thoroughfare and replace aging buses.
Another massive project set to begin late next year is the
construction of a new intercity bus terminal in Pulo Gebang near
Bekasi, West Java to replace the overcrowded Pulo Gadung terminal
in East Jakarta. The new terminal will stand on a designated 10-
hectare plot.
For the tripartite security system, the city allocated some Rp
82.69 billion. "Maintaining city security will also be one of our
priorities," Sutiyoso said.
The councilors will respond to the proposal on Friday.
(dja/07)