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