Legislator questions 1992-93 budget deficit

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)