Govt upbeat about meeting revised budget targets
The Jakarta Post, Jakarta
As the House of Representatives officially passed the 2003 state budget revision into law on Wednesday at a plenary session, Minister of Finance Boediono expressed optimism on meeting all the revised targets.
"We find the new figures realistic. We're confident we can meet them as requested by this budget revision," Boediono said after all nine factions at the House unanimously endorsed the revised budget.
Boediono's optimism came despite the fact that under the new budget, the government has plenty of adjustments to make, as almost all basic assumptions having been changed to accommodate the latest economic developments, both locally and globally.
The revised budget only left the country's economic growth and deficit targets unchanged. The two targets remained at 4 percent and Rp 34.4 trillion, respectively.
The government first proposed the draft revision to the House budget commission on Aug. 26, with the deficit earmarked at Rp 35.4 trillion.
But the lawmakers insisted on keeping the deficit at the initial level, although revenues from taxes would likely fall short of the target while the expenditure was expected to be higher-than-expected.
Tax revenues are expected to reach Rp 248.5 trillion this year, falling short of the initial target of Rp 254.1 trillion this year, while the full-year expenditures would also be higher than earlier estimates due to -- among other things -- the rising subsidies, especially for fuel.
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Revised State Budget 2003
(in billions of rupiah) -----------------------------------------------------------------------------
2003
-------------------------------------
Initial % to Revision % to
GDP GDP ------------------------------------------------------------------------------ A. Revenue and Grants 336,155.5 17.3 342,811.6 19.1
1. Revenue 336,115.5 17.3 342,471.5 19.1
1. Tax Revenue 254,140.2 13.1 248,469.8 13.9
a. Domestic Tax 241,742.4 12.5 236,901.5 13.2
i. Income Tax 120,924.8 6.2 122,448.3 6.8
1. Oil & Gas 14,775.7 0.8 18,143.5 1.0
2. Others 106,149.1 5.5 104,304.8 5.8
ii. VAT 80,789.9 4.2 75,862.7 4.2
iii. Land & Building 7,523.6 0.4 8,873.5 0.5
iv. Transfer Duties 2,401.7 0.1 1,850.1 0.1
v. Excises 27,945.6 1.4 26,114.2 1.5
vi. Other Taxes 2,156.8 0.1 1,752.7 0.1
b. International Trade 12,397.8 0.6 11,568.3 0.6
i . Import duties 11,906.3 0.6 11,332.6 0.6
ii. Export tax 437.5 0.0 253.7 0.0
2. Non-tax Revenue 82,015.3 4.2 94,001.7 5.2
a. Natural Resources 59,395.8 3.1 64,991.0 3.6
b. Profit from SOE's 10,414.2 0.5 12,290.3 0.7
c. Others 12,205.6 0.6 16,720.4 0.9
2. Grants - - 340.1 0.0
B. Expenditures 370,591.8 19.1 377,247.9 21.1
1. Central Government 253,714.2 13.1 257,934.0 14.4
1. Routine 188,584.4 9.7 191,787.9 10.7
a. Personnel 50,240.6 2.6 50,425.6 2.8
b. Material 15,427.1 0.8 16,150.6 0.9
c. Interest Payments 81,975.2 4.2 72,151.4 4.0
d. Subsidies 25,465.3 1.3 34,726.1 1.9
e. Others 15,476.2 0.8 18,334.1 1.0
2. Development Expenditures 65,129.8 3.4 66,146.1 3.7
a. Rupiah Financing 46,229.8 2.4 51,052.6 2.8
b. Project Financing 18,900.0 1.0 15,093.5 0.8
2. Transfer to Region 116,877.7 6.0 119,313.9 6.7
1. Balanced Funds 107,490.5 5.5 109,926.7 6.1
a. Revenue Sharing 27,895.9 1.4 29,924.7 1.7
b. General Allocation Fund 76,978.0 4.0 76,978.0 4.3
c. Special Allocation Fund 2,616.6 0.1 3,024.0 0.2
2. Spec. Autonomy & Balancing Fund 9,387.2 0.5 9,387.2 0.5
C. Primary Balance 47,538.9 2.5 37,715.1 2.1
D. Overall Balance (A-B) (34,436.3) (1.8) (34,436.3) (1.9)
E. Financing 34,436.3 1.8 34,436.3 1.9
1. Domestic Financing 22,450.1 1.2 31,530.3 1.8
2. Foreign Financing 11,986.2 0.6 2,906.0 0.2
a. Gross Drawing 29,250.0 1.5 20,498.1 1.1
i. Program Loan 10,350.0 0.5 5,744.7 0.3
ii. Project Loan 18,900.0 1.0 14,753.4 0.8
b. Amortizations (17,263.8) (0.9) (17,592.1) (1.0)
i. On Schedule (44,279.1) (2.3) (44,996.4) (2.4)
ii. Rescheduling 27,015.3 1.4 25,404.3 1.4 ------------------------------------------------------------------------------- Source: The House of Representatives