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)