Govt to boost funds for primary needs

Govt to boost funds for primary needs

Dadan Wijaksana, The Jakarta Post/Jakarta

The current government has plans increase funds for a total of 66
ministries and agencies next year, particularly those providing
services for "primary needs" -- namely security and order,
education, settlements, infrastructure and health.

In a state-of-the-nation address on Monday, President Megawati
Soekarnoputri unveiled her 2005 state budget draft, which
contains the government's expenditures of Rp 264 trillion, higher
than this year's allocation of Rp 255.3 trillion.

"Some of them (ministries and agencies) will have a relatively
larger budget ceiling to finance operational and non-operational
activities," Megawati said before a plenary session at the House
of Representatives.

The raise, albeit relatively insignificant when inflation is
taken into account, provides a glimmer of hope that the
government has started to focus more attention on providing
better basic public services.

The defense ministry, education ministry, settlements and
infrastructure ministry, the National Police and the health
ministry will all receive more money in 2005 if the draft is
passed, because of their "strategic nature".

Approximately Rp 22 trillion has been allocated for the
Ministry of Defense in 2005, which represents a 2.8 percent
increase over this year.

Megawati said the raise was "essential to maintain territorial
integrity as well as the sovereignty of the country, and to
provide compensation for families of those soldiers who have been
killed or have become permanently disabled in the line of duty."

For education, the ministry will get 12 percent more in its
budget to Rp 21.5 trillion. Among the priorities, was a greater
commitment to implementing the nine-year compulsory education
program, a higher education program, improving the quality of
education and educational personnel.

The Ministry of Settlements and Regional Infrastructure would
receive Rp 12.4 trillion, a 3.3 percent increase. The draft
focused on building and maintenance of roads, bridges and
irrigation canals as well as a program of flood control and
coastal security.

To enhance nationwide security, Rp 11.2 trillion has been
included in the new draft for the National Police, almost a 6
percent hike from 2004.

The budget will not only be allocated for programs to improve
police facilities and equipment, but also for compensation to
those who have been killed or injured in the line of duty.

"The Ministry of Health will receive an allocation of
approximately Rp 7.4 trillion, or an increase of 10.4 percent
compared to year 2004. It will be used to enhance the people's
health, to prevent and eradicate diseases and improve people's
nutrition," Megawati said.

Meanwhile, the Supreme Court would get a gigantic increase in
its budget -- from Rp 154.9 billion in 2004 to Rp 1.1 trillion, a
ten-fold increase.

No specific reason was given for that staggering increase.

Elsewhere, starting in 2005, as mandated by Law No. 17/2003 on
state finance, the state budget will adopt a new budgetary system
called an integrated, or unified system, which merges routine and
development expenditures, into one expenditure format.

The combination of routine expenditures -- specifically
salaries and goods expenditures -- with development expenditures
is expected to reduce overlapping allocations.