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)`