Legislator questions 1992-93 budget deficit
JAKARTA (JP): The Budgetary Commission of the House of Representatives questioned yesterday the Rp 551.2 billion (US$220.54 million) deficit in the 1992-93 state budget, which was earlier estimated to book a surplus of Rp 2.24 billion.
Sa'di Zen Noor of the Moslem-dominated United Development Party (PPP) charged that the deficit occurred due to the government's failure to follow its budget plan.
"It indicates that the government has abused the balanced budget system," he said in a hearing with Minister of Finance Mar'ie Muhammad.
The hearing, which will proceed until Friday, was deliberating the realization of the state budget for 1992-93 fiscal year.
The initial estimate of the 1992-93 state budget, which was approved by the House before the end the fiscal year, showed a surplus of around Rp 2.24 billion. In the realization, however, there was a deficit of Rp 551.2 billion.
Besides the initial estimate of the budget implementation and actual realization, the budget plan should be also approved by the House before the start of the fiscal year.
Yesterday's hearing was focused on listening to the House members' questions but in his written answers, Minister Mar'ie said that the deficit occurred due to the higher-than-expected spending in certain industrial sectors.
Difference
"The estimate for both state revenues and spending were made several months before the end of the fiscal year. The difference in the estimated figures and the actual realization could not, therefore, be avoided," he said of the reason why such a budget inconsistency could occur.
He said that the actual revenues from duties was, for example, 5.85 percent lower than those estimated before the end of the fiscal year.
Revenues from other levies was also 29.9 percent lower than the initial estimate due to the lower-than-expected revenues from stamp duty, he said.
The minister said that the deficit also resulted from the unexpected increase in the spending for the expansion of strategic industrial plants, such as those operated by the IPTN light aircraft manufacturer, PT PAL shipyard and PT Pindad military equipment producer.
"Most of the funds for those strategic industrial companies were disbursed at the end of the fiscal year," he said of the reason why the estimated realization of the 1992-93 state budget did not cover such spending.
I Gde Artjana of the Armed Forces faction said that the deficit took place due the government's failure to spend the state funds according to existing priorities.
"It seems that the government spent the money without any plans," he said.(hen)