City sets Rp 12.16t budget for next year

Bambang Nurbianto, The Jakarta Post, Jakarta

The Jakarta City Administration is proposing some Rp 12.158 trillion (US$1.43 billion) for the 2004 city budget, or a 10.68 percent increase from the previous year's budget of Rp 11.563 trillion.

Education and health is now top priority, with a proposed allotment of 29.69 percent of the total budget, or Rp 3.610 trillion. This year, government expenses formed the largest portion of the budget at 31.31 percent of the budget, provoking widespread criticism.

The proposed figures were revealed in the 2004 City Development Plan (Repetada) which was approved by the City Council on Thursday. The detailed draft of the 2004 City Budget will be submitted to the City Council in early December.

The Rp 12.158 trillion includes Rp 2.228 trillion, which is the expected unused portion of the 2003 budget.

The city development plan also shows that original income (PAD) will contribute Rp 5.356 trillion to next year's budget, compared to this year's contribution of Rp 4.662 trillion.

The income shared by the city and the central government is expected to reach Rp 4.520 trillion, an increase of 6.07 percent, compared to this year's figure of Rp 4.262 trillion.

A detailed source of the city's income is not yet available, but it is estimated that the budget will still rely heavily on taxes, particularly vehicle taxes.

Although the budget for education and health has experienced a significant increase, the figure has not fulfilled the constitutional target which -- for the educational budget alone -- should be 30 percent of the total budget.

This year, administration expenses reached Rp 3.620 trillion. Next year, the budget for administration will be Rp 3.101 trillion.

Other significant expenses will be for infrastructure, reaching Rp 2.531 trillion. Special attention is given to the Bus Rapid Transit (BRT) or busway project and the East Flood Canal project, with a combined budget of Rp 1.292 trillion.

Several important macroeconomic indicators for the 2004 city budget, stated in the city development plan, include an economic growth of 4.80 percent, an inflation rate of 9 percent, and the exchange rate against US dollar at Rp 8,700.

Trade and services will be the main contributor to the capital's economy, predicted at 65.54 percent; followed by industries, electricity, and clean water at 34.33 percent, and agriculture 0.16 percent.