House approves 2002 state budget

House approves 2002 state budget

Dadan Wijaksana, The Jakarta Post, Jakarta

All ten factions of the House of Representatives unanimously
approved, at a plenary session on Wednesday, the government-
proposed 2002 state budget draft into law.

The approval finally ended earlier speculation that the House
might have delayed it until December, after the budget committee
had extended the deadline for the completion of the budget debate
several times. The delay would have angered regional
administrations, which are entitled to receive funding from
Jakarta for next year's administrative expenditure.

"After long debate with the (House budget) committee, the bill
has finally been approved," Minister of Finance Boediono said in
his speech.

"This approval is very significant, as it provides a
constitutional basis for the country's development
sustainability," he added.

With a total state revenue of Rp 301.9 trillion (US$30
billion) and state expenditure of Rp 344 trillion, the budget
deficit for next year will be Rp 42.1 trillion, or equal to 2.5
percent of the country's gross domestic product (GDP).

The government had previously proposed a budget deficit of Rp
43.03 trillion.

The government first presented the bill to the House in
September, but the global economic slowdown -- which has been
accelerated by the September attacks on the U.S -- has prompted
the government to revise the budget's basic assumptions.

The approved 2002 budget now assumes an average rupiah
exchange rate of 9,000 against the U.S. dollar, compared with
8,500 originally, while economic growth is expected to reach 4
percent (from 5 percent), inflation 9 percent (from 8 percent),
and the international oil price $22 per barrel (unchanged).

Meanwhile, the proceeds target of the privatization program is
set at Rp 6.5 trillion, while the sale of assets under the
Indonesian Bank Restructuring Agency (IBRA) is expected to rake
in some Rp 48.2 trillion.