On 2005 budget

Your editorial dated Feb. 10, 2004, titled Preparing the 2005 budget, provides a sound rationale on the need for a postelection government to be responsible and accountable for the "state budget, which is the most important tool implementing fiscal policies". You also stated correctly that "the current government and House of Representatives do not have the political mandate to legislate the 2005 state budget".

You accept these important democratic principles. And yet, in your conclusion, you argued for the preparation and discussion of the draft 2005 budget by the incumbent government and a House of Representatives that will be replaced by a newly elected House.

You hinted that due to time constraints, the democratic principle of accountability must be compromised in favor of expedience to approve a new budget prepared by a government that would have to receive a new political mandate in an election. You boldly suggested that the budget prepared by the incumbent government "would help establish confidence in the new government if the 2005 state budget is drafted upon the basis of the current fiscal policies".

This is a dangerously prejudicial statement. It is an insult to the Indonesian electorate that their newly elected government would not be able to formulate macroeconomic polices that would sustain market confidence unless they followed present policies. Your remarks hinted at threatening policymakers of the new government that the current policies are the only policies, and must be followed.

You are not entrusting the new government the responsibility to frame its own policies in our democratic model. Your conclusion, "there does not appear to be alternative fiscal policies for the new government", sends a frightening reminder that there are still people preaching elements of dictatorial New Order policies.

Your editorial would have been more in line with our democratic reform if you had suggested ways to deal with the timely discussion of the 2005 draft budget. To propose that the draft budget be discussed with the incumbent House, whose term will be completed by October, is irrelevant. If there is a need to pay for government employees, such need can be accommodated by a transition budget designed solely for that purpose, nothing else.

RONNIE H. RUSLI
Senior Lecturer
Postgraduate Program
University of Indonesia
Jakarta

Note: The essence of our editorial suggests that the incumbent government and the House of Representatives can help smooth the transition process by preparing a draft budget that is subject to revision by the new government. Such a process will not in anyway compromise the democratic principle of accountability as the new government will still exercise the final fiat for the 2005 budget. Doesn't Law No.17 on state finances also stipulate that the state budget shall be prepared two months before the beginning of the fiscal year, while the new government will be formed only in early November at the soonest?

--Editor