Sutiyoso to propose 37% hike in revised budget

Sutiyoso to propose 37% hike in revised budget

JAKARTA (JP): Governor Sutiyoso will soon submit to the City
Council a review of the 1999/2000 budget worth Rp 3.7 trillion
(US$544 million), a 37 percent increase from the current budget
of Rp 2.7 trillion, a senior official said on Wednesday.

"The proposal will be submitted on Friday," a city
administration official, who requested anonymity, said.

He said the increase of the revised budget would come from an
increase on the tax on motor vehicles and from the city's surplus
from the previous budget which amounted to Rp 422 billion.

He said Rp 1 trillion of the budget would be used for
expenditure on city development projects, with the remaining Rp
2.7 trillion for routine expenditure.

Twenty percent of the 1999/2000 budget would be used for
social safety net programs, including measures to improve the
city's food supply and to reduce the unemployment rate, he said.

Commenting on the increase in the budget, the council's
commission C for financial affairs chairman Amarullah Asbah said
it hinted the start of the return of economic activities in the
city.

"Thank God. It shows that the economic activities here have
started to recover," Amarullah said.

He said the increase on motor vehicle taxes might add to the
city's revenue significantly.

"Twenty percent of the city's revenue comes from the vehicle
taxes," he said.

He said the council would first study the revised proposal and
then decide whether to approve the proposal or ask the city
administration to make necessary corrections. (jun)