Govt submits new budget draft

Govt submits new budget draft

The government officially submitted the 2005 state budget
revision draft to the House of Representatives as a response to
the latter's decision to review the government's policy in
increasing fuel prices on March 1 and the allocation of the low-
income assistance funds derived from slashing the fuel subsidy.

The draft will be discussed in the House plenary session in
May because starting on Friday, legislators will have a one-month
recess.

"We hope the House members can help spread information to the
public on the government's policy to increase fuel prices during
the lawmakers visits to their respective constituencies during
the recess," Minister of Finance Yusuf Anwar said on Wednesday
after submitting the revision draft to the House deputy speaker
Soetardjo Soerjogoeritno.

The House budgetary commission deputy chairman A. Hafiz Zawawi
said the fuel subsidy disbursed from the 2005 state budget for
January and February had reached Rp 16 trillion (US$1.7 billion)
but the original state budget had the fuel subsidy totaling Rp 19
trillion for the year.

In the revised draft, the government will raise its oil price
assumption from US$24 per barrel to $35 per barrel, increase the
budget deficit assumption from 0.8 percent of gross domestic
product to 1.07 percent, revise its rupiah exchange rate
assumption from Rp 8,600 against the U.S. dollar to Rp 8,900 per
dollar, revise the inflation rate from 5.5 percent to 7 percent
and maintain the oil output target of 1.125 million barrels per
day. -- JP