Govt asked to be more disciplined on budget

Govt asked to be more disciplined on budget

JAKARTA (JP): The Budgetary Commission of the House of
Representatives urged the government yesterday to be more
disciplined in implementing its budgetary plans.

All four factions in the commission, including the ruling
political group Golkar, said that deviations from the state
budget, as seen in fiscal year 1994/1995, should not occur again
in the future.

Muchsin, a spokesman of the Moslem-based Development Party,
said that the deviation last fiscal year ran counter to the
government's balanced-budget principle.

He said that the deficit, which came to approximately Rp 1.85
trillion (US$840 million at the current rate) reflected poor
control on the government's part in the implementation of its
budget.

"This kind of mistake should not be repeated in the future,"
Muchsin said at the close of a three-day discussion on the
implementation of the 1993/1994 state budget, which began on
Monday.

The 1993/1994 state budget, originally planned to balance at
Rp 62.32 trillion, suffered a deficit of Rp 1.85 trillion because
spending exceeded the target by more than 10 percent at Rp 68.71
trillion.

Government revenue actually exceeded the target by about 7
percent, at Rp 66.86 trillion, in spite of the fact that revenue
from the oil and gas sector fell short of its target by 18
percent, at Rp 15.12 trillion.

Minister of Finance Mar'ie Muhammad said that spending had
been higher because of an unexpected increase in the allocation
of funds for the purchase of goods, the subsidizing of domestic
fuel sales and development projects.

The government financed the deficit using standby funds
accumulated from budgetary surpluses in previous years.

Inconsistency

The Indonesian Democratic Party (PDI) also said that the
deficit reflected inconsistency on the part of the government,
which claims adherence to the balanced-budget principle.

While the law permits the government to use its savings to
finance a deficit, the PDI argued that the government did not
consult with House members on the use of the standby funds for
the financing of the budget deficit, the second after that in
1992/1993.

PDI spokesman Marwan Adam said that the government should have
asked for the House's approval before using the standby funds.

"It indicates that the government not only failed in honoring
the balanced-budget principle, but also ignored the budgetary
rights of the House," he said in his party's final submission on
the 1993/1994 budget.

The other two factions -- Golkar and the Armed Forces -- said
that they understood the reasons given by the government about
the deficit.

The four factions approved the change in the state budget,
notwithstanding their reservations.

Under procedural regulations, a balanced government budget
should be passed by the House at least three times. Approval is
first needed for the budget plan, which is usually drawn up ahead
of the commencement of a given fiscal year. The second approval
from the House is need for the unaudited or "semi-realization" of
a budget plan. This is generally put before the House before the
end of a fiscal year.

Approval should be gained from the House on a third occasion
for the audited (actual) realization of a budget. This should be
put to the House within two years of the end of the fiscal year
in question. (hen)`