Govt secures approval for key assistance funds
Urip Hudiono, The Jakarta Post, Jakarta
Previous concerns of a delay in the disbursement of the much needed assistance funds for low-income families have proved unfounded now that the House budget commission has agreed to the government's proposed 2005 state budget revision.
The approved funds will stand at Rp 12.49 trillion (US$1.3 billion), with greater assurance for children from low-income families of getting a better education, as the funds will mostly go to a "tuition-free education scheme".
The figure is an increase from the Rp 10.78 trillion the government had previously proposed, in addition to the Rp 7.34 trillion already disbursed this year to help alleviate any financial burden on the poor caused by the recent fuel price increase.
The commission will officially approve the new figures at a hearing on Tuesday.
The commission formed three working groups for its deliberation of the budget revision, with each respectively tasked to discuss the government's proposal of the budget's macroeconomic assumption, the low-income assistance funds and the rehabilitation and reconstruction fund for tsunami-stricken Aceh province.
Explaining the commission's approval for the assistance funds, group chairman Hafiz Zawawi said his working group had agreed to raise the assistance funds for education to Rp 6.27 trillion. It also changed the disbursement scheme from the previously proposed scholarships for students from low-income families, to a free- tuition education scheme.
Schools receiving the funds must exempt its students from all tuition and fees, including for books and exams, with Hafiz asserting that the fund would be strictly monitored.
"The use of the funds have to be approved by the school's committee according to government guidelines," he said. "Local administrations must not cut any fund disbursements."
Similarly, the budget commission will also approve additional assistance funds for public health, from Rp 2.78 trillion to Rp 2.88 trillion, in the form of free health services for low-income families at community health centers and third-class treatment at general hospitals throughout the country.
Meanwhile, assistance funds for rural infrastructure development -- consisting of road repairs, irrigation projects and clean water facilities -- will remain the same at Rp 3.34 trillion, but will be disbursed to more underdeveloped villages in the country.
"Allocations for each village will be decreased from Rp 300 million to Rp 250 million, so we can assist more villages -- 12,834 villages instead of the previous 11,140," Hafiz said.
Meanwhile, the commission is also expected on Tuesday to agree to a revised growth rate of 6 percent, inflation rate of 7.5 percent, rupiah exchange rate of Rp 9,300 per U.S. dollar and an oil price of $45 per barrel.