Indonesian Political, Business & Finance News

State budget 101

| Source: REPUBLIKA

State budget 101

From Republika

The good intention of the government, in this case President
Megawati Soekarnoputri, to provide aid for the repair of
Indonesian Military/National Police barracks has prompted
legislator Djamal Doa, a member of the United Development Party
(PPP) faction in the House of Representatives, to question the
aid by initiating an interpellation on the source of the Rp 30
billion in extra-budgetary funds. Twenty-two legislators have
signed up in support of the proposed interpellation, though State
Secretary Bambang Kesowo said in New Delhi, India, on April 1
that the funds came from presidential aid left over from the New
Order government.

According to him, the President realizes that the funds should
be transferred to the finance minister (i.e. the state treasury).
In this context, the state secretary should promptly transfer the
money pursuant to the budget procedures, which follow the gross
principle with no combination or compensation between expenditure
and income, as a consequence of the House's budgetary right
requiring the inclusion of all spending in the budget so that no
government activity is beyond legislative control.

Furthermore, the Army chief of staff is prepared to return (to
the state secretary) the presidential aid, whose origin is
unknown. As a substitute, the state secretary can propose an
auxiliary budget in the current fiscal year to the House (based
on article 6 of the treasury law) or make a budget adjustment
(article 5 of the law) through the use of the contingency
spending item, to be submitted to the finance minister for
approval.

In this way, President Megawati's aid could be expected to not
become the so-called "Asramagate" (Barrack-gate) akin to the
protracted State Logistics Agency (Bulog) scandal.

HM SUKRANI SUKARI

Jakarta

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