Govt secures approval for key assistance funds
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.