Govt predicts budget deficit of Rp 500b this fiscal year

Govt predicts budget deficit of Rp 500b this fiscal year

JAKARTA (JP): The government expects a budget deficit of Rp
500 billion (about US$58 million) for the 1998/1999 fiscal year
ending on March 31, Minister of Finance Bambang Subianto said
here on Thursday.

Bambang said that actual revenues were expected to be around
Rp 215.1 trillion, 18.5 percent lower than budgeted, while actual
spending was estimated at Rp 215.6 trillion, 18.3 percent lower
than planned.

"The 1998/1999 budget which was planned to balance at Rp 263.9
trillion is expected to undergo some slight changes," he told a
House of Representatives plenary session.

In order to balance the budget, which is a constitutional
requirement, the government has taken loans from bilateral and
multilateral institutions, including the World Bank, the Asian
Development Bank and the International Monetary Fund.

Bambang, however, said that the international aid was being
released slower than expected.

He said that the government had only received 51 percent of
the targeted overseas development funds.

The lower amount was particularly attributed to administrative
problems and difficulties, he said.

"There has also been a delay in the disbursement of the
external loans," he added.

Indonesia has been slow in implementing various economic
reform programs due to several factors, including the fear of
corruption. This in turn has slowed the disbursement of foreign
aid.

The disbursement of the social safety net fund, for example,
will have to be extended until June because of the slow
implementation of the multibillion dollar program, which is
designed to help the poor survive the current economic crisis.

Bambang also said that the balance of payment surplus in the
fiscal year was expected to reach $8.7 billion, which consists of
$4.2 billion in current account surplus and $3.1 billion in
capital account surplus.

He added that the remaining $1.4 billion was still being
assessed. (rei)