Megawati to unveil 2001 state budget

Megawati to unveil 2001 state budget

JAKARTA (JP): Vice President Megawati Soekarnoputri is
scheduled to propose the 2001 state budget to the House of
Representatives on Monday, at a time when the government is
bracing for a new wave of nationwide demonstrations against fuel
price increases introduced on Sunday.

Megawati will deliver the budgetary address on behalf of
President Abdurrahman Wahid, who is away on state visits to
several Latin American countries, at a House plenary session
to be chaired by House Speaker Akbar Tandjung.

The January-December 2001 state budget will be the country's
first calendar year-based budget.

Government officials have said that next year's budget will be
heavily burdened by government domestic debts incurred by the
huge costs of bank restructuring and recapitalization program.

The implementation of regional autonomy starting next year
will also sharply cut the revenue of the central government as
regional administrations will get a greater portion of income
from their natural resources.

The government has said that it expects to secure some US$4.8
billion in loans from the country's traditional donors grouped in
the Consultative Group on Indonesia (CGI) to help plug part of
the budget deficit.

The government told the House in recent hearings on the state
budget that asset sales by the Indonesian Bank Restructuring
Agency and privatization of state companies would cover at least
half of the budget deficit, estimated to reach some Rp 52.9
trillion ($6.15 billion).

The government might also have to further reduce fuel
subsidies next year in a bid to ease the burden on the state
budget.(rei)