Governor to submit draft budget
Bambang Nurbianto, The Jakarta Post/Jakarta
Governor Sutiyoso on Tuesday will officially submit a draft on the 2005 budget to be deliberated at the City Council, the first session for the newly installed councillors.
The proposed budget for next year is Rp 13.93 trillion (around US$1.55 billion), an increase from Rp 12.69 trillion this year.
City officials and councillors are given about three weeks for budget deliberations with the final say on the draft expected on Dec. 31.
Despite the limited time, however, Council deputy speaker Ahmad Heriyawan expressed optimism that it could be finished on time.
"It means each and every one of us has to work overtime and to make extra efforts to meet the deadline," he said on Monday.
In the budget proposals, Sutiyoso's administration still relies on regional tax revenues that are expected to contribute around Rp 5.73 trillion to city coffers. From the revenue sharing arrangement with the central government the city is expected to gain Rp 4.94 trillion.
City-owned enterprises, holding assets of about Rp 50 trillion, contribute only Rp 103.4 billion to revenues.
Rp 1.9 trillion of unused budgetary funds from last year will also be included in next year's budget.
On the expenditure side, the city administration categorizes three major spending areas, with Rp 2.82 trillion for prioritized programs, Rp 4.67 trillion for fixed costs, and Rp 6.35 trillion for variable costs.
The 13 prioritized programs include projects to construct busways, the Eastern Flood Canal, river maintenance, low-cost apartments, elevated roads and underpasses, waste treatment plants, a pilot project for integrated public services in 50 subdistricts and 10 districts, microcredit schemes, the development of the Jakarta Islamic Center, teachers' welfare, school renovations and reforestation.
The administration proposes allocating Rp 515 billion from the budget for the construction of two busway corridors, which will serve Pulo Gadung in East Jakarta to the National Monument (Monas) in central Jakarta and from Pulo Gadung to Kali Deres in West Jakarta.
The budget increase is based on estimations of next year's economic growth that is expected to rise to 5.2 percent, as compared to 4.7 this year. Other economic assumptions includes an expected inflation rate 6 percent, as compared to this years 6.5 percent, and an exchange rate Rp 8,650 against US dollar as compared to 2004 budget assumption of Rp 8,700.