Mon, 02 Feb 2004

Govt considers early budget deliberation

Dadan Wijaksana, The Jakarta Post, Jakarta

The government is reviewing suggestions from certain lawmakers to speed up the drafting of the 2005 state budget bill to prevent its disruption by this year's national elections.

A thorough study on whether the bill should be drafted earlier than usual is needed to ensure that the issue would not provoke any dispute or confusion later, said Minister of Finance Boediono.

"... Even if the current government enacts the bill into law, the next government still has the right to draft its own budget," he said after a hearing late on Friday with the House of Representatives Budget Committee.

During the elections, a total of 24 parties will compete for some 145 million registered voters in the April 5 legislative election and the July 5 presidential election.

Boediono was commenting on rising calls from legislators urging the government to submit the draft 2005 state budget to the House as early as possible, so that its deliberation could proceed without much interference from the elections, which is expected to keep lawmakers busy.

Many of the sitting lawmakers are expected to engage in lengthy election campaigns for their respective parties.

Poltak Sitorus, deputy chairman of the budget committee, was among the first to raise the call, suggesting that deliberation should start in March for enactment in September at the latest.

Usually, the draft budget debate begins in August and it is passed into law in November or December.

Poltak also argued that the budget process -- from drafting, deliberation, to enactment of the budget -- should be conducted by the current economic ministry.

Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti earlier has said that while the current government was responsible for formulating the draft, it was the task of the succeeding government and House to deliberate and enact it.

Some lawmakers said the plan was too risky, as aside from the busy campaign schedule, technical difficulties would likely emerge for the newly assembled government to deliberate the bill immediately.

Boediono acknowledged the dilemma and stressed the need for a careful study before reaching any conclusion.

"Also, under the law -- at least in principle -- we must consult on the matter with the Budget Committee ... we must meet to discuss the details," he explained.

No date has yet been set for a meeting to discuss the issue.

Due to its impact on the economy, an annual state budget must be determined by the government and the House before the end of the year. Failure to do so would create confusion in the nation's fiscal management in the first months of the following year.

A late national budget will also delay regional governments in drawing up their own budgets, as the regions still depend heavily on budget allocations from the central government.