City to propose minimal budget cut

JAKARTA (JP): The municipality is to propose a cut in its Rp 3.36 trillion (US$1.05 billion) budget of less than 10 percent for the 1997/1998 fiscal year, the deputy governor of economic and development affairs Tb.M. Rais said yesterday.

The proposal will be made after evaluating some of the city's projects "due to our overprojecting the cost of some projects in last year's budget," Rais said after a meeting on the plan to revise the budget.

He said that the city had earlier estimated some projects in the previous fiscal year could not be completed as scheduled and would continue into this fiscal year.

"In reality, however, all the projects were completed and there's no need to set aside funds for them," Rais said, without giving further details on the cut.

"I can't reveal the figures because I have to present them to the City Council first," he said.

When asked whether the budget cut exceeded 10 percent, he said: "It is less than 10 percent."

Golkar councilor Amarullah Asbah urged the city not to cut the budget of projects intended to improve public services.

"The administration can cut the budget for non-physical project, such as unnecessary training courses and comparative studies, but the plan to provide sophisticated equipment to improve services should go ahead," said Amarullah, who chairs the City Council's Commission C for financial affairs.

In addition, he said, any budget cuts should be carefully studied so not to adversely affect low-income people.

Governor Surjadi Soedirdja said in January while proposing the 1997/1998 budget that the Rp 3.36 trillion budget was inadequate to finance the administration's activities.

He said the municipality had to cover not only its routine expenditure but also finance events such as the many national holiday celebrations and state banquets.

"The new budget is just one-fifth of the real requirements," he said, stressing that the city needed more money to finance its routine and development programs.

In the 1997/1998 term, the municipality expects to receive an income of Rp 3.2 trillion. (ste)