Soeharto proposes tight budget
Soeharto proposes tight budget
JAKARTA (JP): President Soeharto proposed increasing the state
budget 11.6 percent for the 1997/1998 fiscal year at the House of
Representatives yesterday.
The draft budget, which when adjusted for inflation is only 5
percent larger than this year's budget, despite what the
President called a political year, is envisaged to balance at Rp
101.08 trillion (US$42.8 billion).
"For the first time, our state budget will surpass Rp 100
trillion," Soeharto said in his budgetary speech at a House
plenary session.
The prosed budget includes Rp 62.15 trillion of routine
expenditure and Rp 38.92 trillion of investment (development
expenditure).
Internal receipts from taxes and levies would generate Rp
88.06 trillion, or 87 percent of total revenue, and foreign loans
would contribute the remaining Rp 13.02 trillion.
The budgetary address, like his previous speeches to introduce
the draft annual state budget, recounted key economic indicators
for last year, charted out the economic challenges and outlook
for this year and touched on international developments.
But in view of the May 29 general election and the March 1998
presidential election, the President also mentioned the political
agenda, succession of the national leadership and the new
cabinet.
He said the coming general election, in which the public would
exercise their democratic rights, should bring happiness.
"Therefore, we have to prevent the general election creating
anxiety and suffering for the people."
He said the political climate would automatically heat up this
year but we must "avoid an uncontrollable situation, clashes and
animosity among ourselves".
Soeharto, apparently referring to the higher incidence of
political violence last year, warned that differences of opinions
should not be aggravated out of proportion, particularly when
irrational elements were involved.
He admitted that there were shortcomings and disparity in the
people's economic progress but warned that "what we have heard
often lately were very unbalanced scrutinies of the shortcomings
and gaps".
Soeharto cautioned that continuing to blow up the sensitive
issues of disparity and poverty among the people could lead to
riots and the destruction of economic facilities and social
foundations.
"These practices are identical with sowing the seeds of
dissension to destroy national unity, as exemplified by the
recent incidents in several places," he warned.
He cited corruption, collusion and manipulation as other
issues that could easily incite public emotion.
"The government is fully aware of the danger of these issues
and will continue to take firm action to eliminate all
malfeasance."
Everybody, he said, was free to observe, study, discuss and
offer solutions to these shortcomings and disparity. In fact, "we
all need clear, impartial and constructive observations and ideas
to address those sensitive issues."
He called on the press and prominent community leaders to play
a pivotal role in mobilizing public attention toward more
productive things, restrain emotion and encourage clearer
perception.
"A coverage that mixes the views of public leaders, both
formal and informal, or exposes differences of opinions, would
only confuse most people."
Soeharto stressed that a nation state could only function if
there was solid national integration, when the unity and cohesion
between the government, people and its territory were assured.
Development, he said, was a change toward progress. But a
change was completely different from chaos.
"What we need is a planned, orderly and peaceful change," he
said.
He added that law enforcement, refreshing democratic life and
respecting human rights required processes.
Progress
The President recounted the great progress made in lowering
the inflation rate to 6.47 percent last year from 8.60 percent
for 1995.
He said the estimated economic growth last year was also
respectably high at 7.5 percent, though down slightly from 8.2
percent for 1995.
"With such a growth rate, the per capita income of our nation
in 1995 surpassed $1,000," he said.
But he again called for caution over the pressures on the
balance of payments because the current account deficit was
estimated to further increase to $9.8 billion next fiscal year
from an estimated $8.8 billion for this fiscal year.
"This situation is mainly caused by the rather slow growth
rate of our exports even though the growth rate of imports has
slowed down," he said.
He re-emphasized the importance of continuing deregulatory and
bureaucratic reforms to increase economic efficiency and
strengthen the competitive edge of exports.
The President noted that high economic growth under solid and
dynamic monetary stability would promote a more equitable
distribution of the fruits of development.
He said the accelerated program of poverty alleviation had
succeeded in cutting the number of people in absolute poverty
from 26 million in 1993 to 22 million, or 11 percent of the total
population, last year.
Most of the development budget, or 38 percent of the budget,
would continue to be allocated for regional development which
emphasized rural communities. (vin)
JAKARTA (JP): President Soeharto proposed increasing the state
budget 11.6 percent for the 1997/1998 fiscal year at the House of
Representatives yesterday.
The draft budget, which when adjusted for inflation is only 5
percent larger than this year's budget, despite what the
President called a political year, is envisaged to balance at Rp
101.08 trillion (US$42.8 billion).
"For the first time, our state budget will surpass Rp 100
trillion," Soeharto said in his budgetary speech at a House
plenary session.
The prosed budget includes Rp 62.15 trillion of routine
expenditure and Rp 38.92 trillion of investment (development
expenditure).
Internal receipts from taxes and levies would generate Rp
88.06 trillion, or 87 percent of total revenue, and foreign loans
would contribute the remaining Rp 13.02 trillion.
The budgetary address, like his previous speeches to introduce
the draft annual state budget, recounted key economic indicators
for last year, charted out the economic challenges and outlook
for this year and touched on international developments.
But in view of the May 29 general election and the March 1998
presidential election, the President also mentioned the political
agenda, succession of the national leadership and the new
cabinet.
He said the coming general election, in which the public would
exercise their democratic rights, should bring happiness.
"Therefore, we have to prevent the general election creating
anxiety and suffering for the people."
He said the political climate would automatically heat up this
year but we must "avoid an uncontrollable situation, clashes and
animosity among ourselves".
Soeharto, apparently referring to the higher incidence of
political violence last year, warned that differences of opinions
should not be aggravated out of proportion, particularly when
irrational elements were involved.
He admitted that there were shortcomings and disparity in the
people's economic progress but warned that "what we have heard
often lately were very unbalanced scrutinies of the shortcomings
and gaps".
Soeharto cautioned that continuing to blow up the sensitive
issues of disparity and poverty among the people could lead to
riots and the destruction of economic facilities and social
foundations.
"These practices are identical with sowing the seeds of
dissension to destroy national unity, as exemplified by the
recent incidents in several places," he warned.
He cited corruption, collusion and manipulation as other
issues that could easily incite public emotion.
"The government is fully aware of the danger of these issues
and will continue to take firm action to eliminate all
malfeasance."
Everybody, he said, was free to observe, study, discuss and
offer solutions to these shortcomings and disparity. In fact, "we
all need clear, impartial and constructive observations and ideas
to address those sensitive issues."
He called on the press and prominent community leaders to play
a pivotal role in mobilizing public attention toward more
productive things, restrain emotion and encourage clearer
perception.
"A coverage that mixes the views of public leaders, both
formal and informal, or exposes differences of opinions, would
only confuse most people."
Soeharto stressed that a nation state could only function if
there was solid national integration, when the unity and cohesion
between the government, people and its territory were assured.
Development, he said, was a change toward progress. But a
change was completely different from chaos.
"What we need is a planned, orderly and peaceful change," he
said.
He added that law enforcement, refreshing democratic life and
respecting human rights required processes.
Progress
The President recounted the great progress made in lowering
the inflation rate to 6.47 percent last year from 8.60 percent
for 1995.
He said the estimated economic growth last year was also
respectably high at 7.5 percent, though down slightly from 8.2
percent for 1995.
"With such a growth rate, the per capita income of our nation
in 1995 surpassed $1,000," he said.
But he again called for caution over the pressures on the
balance of payments because the current account deficit was
estimated to further increase to $9.8 billion next fiscal year
from an estimated $8.8 billion for this fiscal year.
"This situation is mainly caused by the rather slow growth
rate of our exports even though the growth rate of imports has
slowed down," he said.
He re-emphasized the importance of continuing deregulatory and
bureaucratic reforms to increase economic efficiency and
strengthen the competitive edge of exports.
The President noted that high economic growth under solid and
dynamic monetary stability would promote a more equitable
distribution of the fruits of development.
He said the accelerated program of poverty alleviation had
succeeded in cutting the number of people in absolute poverty
from 26 million in 1993 to 22 million, or 11 percent of the total
population, last year.
Most of the development budget, or 38 percent of the budget,
would continue to be allocated for regional development which
emphasized rural communities. (vin)