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)