Jakarta budget up by 9% next year
Jakarta budget up by 9% next year
Ahmad Junaidi, The Jakarta Post, Jakarta
The city administration announced on Monday that its budget
for next year would increase by about 9 percent to Rp 10.6
trillion (US$11.8 billion), and promised free tuition for junior
high school students.
"Next year's budget will increase by 9 percent, from the
current Rp 9.7 trillion, to Rp 10.6 trillion," said
administrative assistant to the city secretary Makmun Amin.
Speaking after discussing the budget with Jakarta Governor
Sutiyoso at City Hall, he said that the city's tax income next
year would reach Rp 4.6 trillion and the general allocation of
funds from the central government Rp 4 trillion, while some Rp 2
trillion would be left over from this year's budget.
According to him, the city's tax income of 4.6 trillion was
mostly secured from the vehicle, land and property, and
entertainment taxes. Last year's tax income was only Rp 4
trillion.
He said this year the central government was expected to hand
over Rp 4 trillion, known as the general allocation fund (DAU).
Some Rp 2 trillion of this year's budget that was not used
would be included in next year's, Makmun said.
Some projects, planned to be financed by the 2002 budget, were
postponed due to a lack of preparation, including the
controversial busway project, valued at Rp 54 billion.
Another project also postponed was the development of several
public parks, worth Rp 250 billion, halted due to the high cost
of land acquisition.
The city also cannot carry out this year land acquisition for
the East Flood Canal project, estimated at Rp 50 billion.
The planned 2003 budget is scheduled to be submitted to the
City Council next month for approval. Usually, the budget is
approved in January after being discussed with the council.
Makmun said that they would use new terms in the next budget.
"We will separate funds for the public from those for capital
items," he said.
Makmun claimed that of the Rp 10.6 trillion budget 70 percent
would be used for public expenditure, with the remaining 30
percent on routine expenditure.
Of this year's Rp 9.7 trillion budget 40 percent was on
routine expenditure, while 60 percent was for development
spending.
Separately, councillor Dani Anwar of the Justice Party took
the view that there were no changes, apart from terminology, in
spending for next year's budget.
"Some spending that was allocated to routine expenditure will
now be included in public spending, so there are no changes in
the budget," said Dani, who is also a member of council
commission B for economic affairs.
Meanwhile, head of the City Development Planning Office Ritola
Tasmaya said the city administration planned to exempt junior
high school students from paying tuition fees.
Ritola said the administration would allocate Rp 195 billion
to cover tuition fees for students of state elementary and junior
high schools.
"However, we are still considering whether we should exempt
all students from paying tuition fees or just those from poor
families," he said after the meeting.
He explained that each elementary school student would receive
a subsidy of Rp 15,000 a year, or a total of Rp 115 billion,
while students of junior high schools would receive a Rp 25,000
subsidy per year for tuition fees, or a total of Rp 115 billion.
The city administration has freed students of state elementary
schools from paying tuition fees. But the fees, which amounted to
no more than Rp 2,000 per month do not really burden students, as
many of them complained about the education donation (BP3) which
was applied differently by each school. Each student is required
to pay Rp 10,000 to Rp 20,000 per month to BP3.