The new city budget is inadequate: Governor

The new city budget is inadequate: Governor

JAKARTA (JP): Jakarta Governor Surjadi Soedirdja said
yesterday the city administration's 1997/1998 budget of Rp 3.36
trillion (US$1.4 billion) is inadequate to finance its
activities.

The administration had to cover not only its routine
expenditure but also finance events such as the many national
holiday celebrations and state-guest banquets, Surjadi said at a
hearing of House Commission II for home affairs at his office.

"Please help the administration get more money from the state
budget as has been regulated," he said.

The city budget is set by Surjadi in conjunction with the city
council but they are limited by their finite resources.

According to article 18 in government regulation No.11/1990,
official duties undertaken by the city administration should be
financed jointly by the central government and the city.

"In the past, almost all of the expenses were covered by the
city budget," he said.

On Wednesday the governor announced to the City Council a
budget of Rp 3.36 trillion (US$1.40 billion) for the fiscal year
1997/1998, or an increase of 5.30 percent from the current budget
of Rp 3.20 trillion.

This was in line with increases in routine and development
expenditure, which includes various subsidies for government
employers, state-owned primary schools and subdistricts, as well
as for the flood-prevention programs, he said.

"However, the new budget is just one-fifth of the real
requirements," he said, stressing that the city needed more money
to finance its routine and development programs.

According to the governor, the 1997/1998 budget for routine
programs increased by 9.18 percent to exceed Rp 1.83 trillion
from Rp 1.67 trillion in the 1996/1997 budget, while the new
budget for development programs rose fractionally to Rp 1.39
trillion from Rp 1.38 trillion.

Civil servants will enjoy a Rp 20,000-increase in their
monthly welfare subsidies, he said, adding that the Idul Fitri
textile subsidizes of Rp 35,000 per person would also be raised
to Rp 50,000 per person. These are to be given in cash.

The governor also explained that with new subsidies in hand,
the city administration will exempt parents whose children study
at the state-owned primary schools from paying the quarterly
evaluation fees.

One of the city's most costly projects is the program to fight
flooding. The budget for the program was set at more than Rp 121
billion for the maintenance of streets in flood-prone areas of
North and West Jakarta, the creation of water catchments and
other flood prevention programs, Surjadi said.

Touching on the city's earnings, the governor said the
administration expected to receive about 63.06 percent from
primary regional revenues and around 26.75 percent form the
central government. The remainder is expected to come from
development revenues and loans.

"The central government's contribution to the city's income is
very important to support the primary regional revenues," he
said. (04)