Governor to submit draft budget
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.