Govt urges caution on spending

Govt urges caution on spending

JAKARTA (JP): The local administrations of the country's 27 provinces simultaneously received their lists of development projects for the coming fiscal year over the weekend, together with a message from President Soeharto urging caution in light of uncertainty about the world's economy in 1995-1996.

The President said the uncertainty in the world economy might continue for some years to come and that Indonesia had to anticipate its negative effects.

"In the coming years, we will still face a number of economic constraints such as the possible impact of drops of the world's major currencies against the Japanese yen," Soeharto said in a written message, read out during ceremonies marking the reception of the lists of development projects for 1995-1996.

The new lists marked the start of the implementation of the 1995-1996 state budget, which entails a total expenditure of Rp 78.02 trillion (US$35.46 billion).

About Rp 47.24 trillion is earmarked for the government's routine spending, such as personnel expenditure, while the remaining Rp 30.78 trillion is to be used for development projects which will be carried out by the provincial offices of government ministries.

The President said that, apart from facing the impact of the world's unstable money market, Indonesia might also confront more challenges in exporting its commodities in the wake of the increase in the number of competitors from among the developing countries. In addition, he said, Indonesia might face tougher competition in obtaining foreign aid.

"We, therefore, have to be very careful in spending state funds," he said.

East Timor

East Timor, the country's youngest province, receives a budget of around Rp 166.81 billion for the 1995-1996 fiscal year. Rp 58.32 billion of its budget is earmarked for projects to be carried out by the ministry of public works, making it the largest recipient in the province. The smallest allocation goes to the ministry of forestry, which gets Rp 352.37 million.

Bali receives Rp 173.9 billion, of which Rp 75.5 billion is allocated to ministry of public works projects, the largest recipient; Rp 34 billion to the ministry of culture and education; Rp 10.9 billion to the ministry of agriculture; and Rp 8.2 billion to the ministry of health.

Rp 297.5 billion of the national budget is reserved for development projects in South Kalimantan. The largest recipient in that province is also the ministry of public works, with a budget of Rp 90.8 billion. The ministry of culture and education is in second place, with a budget of Rp 38.1 billion, while the ministry of mines and energy came in third, with a budget of Rp 37.8 billion.

Rp 260 billion is to go towards new development projects in Central Kalimantan.

North Sulawesi receives Rp 217 billion, of which Rp 76 billion is earmarked for projects of the ministry of public works; Rp 46 billion for the ministry of culture and education; and Rp 19 billion for the ministry of transmigration.

South Sulawesi will spend Rp 618.7 billion on its development projects; Central Sulawesi Rp 239.78 billion; Bengkulu Rp 163.9 billion; West Nusa Tenggara Rp 211.64 billion; Riau Rp 303.51 billion; Irian Jaya Rp 702.61 billion; West Java Rp 1.22 trillion; and Central Java Rp 1.1 trillion.

East Java receives Rp 2.2 trillion; Lampung Rp 249.77 billion; West Sumatra Rp 281.9 billion; and Jambi Rp 195.89 billion. (hen)