Sutiyoso proposes 11.11% decrease in new budget

JAKARTA (JP): Governor Sutiyoso submitted to the City Council on Friday a draft city budget for the 2000 fiscal year worth Rp 3.295 trillion (US$438.6 million), an 11.11 percent decrease on the current budget of Rp 3.69 billion.

The proposed budget includes routine spending of Rp 2.3 trillion and development spending of Rp 930.1 billion. Last year's routine spending was set at Rp 2.7 trillion while development spending was Rp 953.3 billion.

Although most of the budget will be allotted for routine spending, the governor vowed that the next budget would be prioritized for the interests of city residents.

"More than Rp 862 billion of the routine spending will be used for city employees' salaries and other incentives," he told the councillors.

"We've decided to increase the employees' welfare incentives by Rp 25,000. We've also decided to increase functional incentives for firefighters and officials at the City Sanitation Agency and social institutions," he said.

Sutiyoso said the city's maintenance spending would be increased to Rp 470 billion, from the current amount of Rp 360.76 billion.

"The priority is to maintain public facilities, such as streets, elementary school buildings and city offices," he said.

Maintenance spending for facilities such as streets, bridges, parks, cemeteries and traffic signs would be set at more than Rp 213 billion, with the maintenance of office buildings at more than Rp 150 billion. The spending for city-owned dormitories and official houses would be maintained at Rp 13.9 billion.

"For supplies spending, the city administration proposes Rp 548.1 billion," Sutiyoso said, while adding that Rp 42.5 billion would be used to procure, among other things, medical and laboratory equipment and medicine.

"The nine-year compulsory educational program would receive Rp 3 billion and another Rp 3.512 billion for text books, while libraries would be allocated Rp 4.991 billion."

The governor said the city administration had also set priorities for key and strategic sectors to be financed under the development spending section.

"Our priorities are to accelerate the poverty alleviation and residents' economic development programs, to increase the environment quality and to promote efforts on urban greenery and sanitation," he said.

"The city administration proposes a budget of Rp 112.6 billion for social welfare projects, some Rp 70 billion of which will be allocated to the health sector," he added.

He disclosed that Rp 121.1 billion would be slated for education, youth and sport projects. Education alone would receive Rp 69.5 billion.

Sutiyoso said the administration had apportioned Rp 25.3 billion for the development of city-owned businesses and another Rp 19.7 billion for tourism activities.

On the transportation sector, Rp 81.8 billion is allocated to construct and rehabilitate the city's streets with another Rp 30.1 billion for traffic and land transportation facilities, such as pedestrian bridges, traffic signs and traffic lights, he said.

He said urban development programs would cost some Rp 42.9 billion for street electrification and convenience improvement projects in public places. The programs include sister city projects and development harmonization with neighboring cities.

Meanwhile, spatial planning will cost another Rp 11.6 billion.

The city budget also allocates Rp 22.3 billion for the construction of parks throughout the city, with another Rp 75.4 billion for urban sanitation and garbage management projects.

The draft budget also put the city's estimated inflation rate at 7 percent for the 2000 fiscal year, compared to the recorded rate of 1.77 percent in 1999. The economic development rate is expected to be 1.66 percent, compared to minus 2.7 percent last year. (nvn)