Loan and interest payments above budget
Loan and interest payments above budget
JAKARTA (JP): Loan and interest payments during the current fiscal year ending in March are estimated to reach Rp 21.43 trillion (US$9.37 billion) or 17.7 percent more than the budgeted total of Rp 18.21 trillion, Minister of Finance Mar'ie Muhammad said yesterday.
Mar'ie told the House of Representatives that the unexpectedly high payments were due to a faster realization of domestic and foreign loan repayments.
The repayment of domestic debts is estimated to reach Rp 1.78 trillion, compared to the budgeted amount of only Rp 318.8 billion, due to the reimbursement of Rp 1.5 trillion in net profits from domestic oil fuel sales which were overpaid to the government by the state-owned Pertamina oil company in fiscal 1993-1994.
"The higher debt repayments and service burdens were also caused by the early payment of high-interest foreign loans from international organizations," he said.
He noted that such early payment was made possible by the floating of the state-owned telecommunication company PT Telkom and the state owned tin company PT Timah on foreign stock exchanges.
According to the minister, the early payment of high-interest loans is part of the government's effort to decrease its financial burdens and to improve the country's balance of payments.
He noted that during the current fiscal year, other routine expenditures are estimated to reach Rp 2.12 trillion or three times as large as the budgeted amount.
The increase was generated by the reclassification of expenditures for the pre-shipment inspection service from development to routine expenditures.
Previously, payments for the pre-shipment inspection were accounted for in the development expenditures.
Mar'ie added that the current state budget which was originally envisaged to balance at Rp 78.02 trillion (US$34.06 billion) is estimated to increase, bringing state revenues up to Rp 82.72 trillion and spendings to Rp 82.35 trillion.
"That means the current budget will end in March with a surplus of Rp 375.3 billion," he said when he briefed the House on the preliminary estimates on the realization of the budget.
Mar'ie said that domestic revenues will account for Rp 71.55 trillion of the Rp 82.72 trillion total revenues or eight percent more than estimated in the budget.
He said the increase was due to unexpectedly high tax receipts.
Mar'ie said that revenues from oil and gas are estimated to reach Rp 14.84 trillion, or 11.8 percent more than the budget estimate, as the average price of Indonesian oil on the international market hit $17.3 per barrel, or 80 U.S. cents more than originally estimated.
Meanwhile, tax receipts from the non-oil and gas sectors are expected to reach Rp 56.71 trillion, or 7 percent more than estimated.
In the current fiscal year, tax revenues -- which consist of income tax, value-added tax, property tax, import duty, custom and excise and export taxes -- are estimated at Rp 48.42 trillion, which is 7.5 percent more than the budget target.
Non-tax revenues -- consisting of various service fees, dividends from state companies and profits from domestic oil fuel sales -- are estimated to reach Rp 7.8 trillion or 20.2 percent more than the budget target.
As a result of higher oil prices on the international market in the current fiscal year, net earnings from oil are expected to reach Rp 487.6 billion, or 33.1 percent less than estimated.
Mar'ie said receipts from foreign loans are expected to reach Rp 11.17 trillion or 5 percent less than the budget target.
Meanwhile, actual expenditures for fiscal 1995/96, which consist of routine expenditures and development spendings, are estimated at Rp 82.35 trillion.
Routine expenditures are estimated to run at Rp 52.54 trillion, or 11.2 percent more than expected, and development expenditures (investment) at Rp 29.81 trillion, or 3.2 percent less. (13/pwn)