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)