Indonesia State budget for the financial year 2007 attended to varied topics ranging from exchange reserves, budget deficit, growth in economy, subsidies, tax ratios among other aspects. The article below throws light on the fund allocation in different sectors of the economy.
The Indonesia State budget for the FY 2007, has been scripted assuming that the economy is performing very well and that there is enhanced stability in the macroeconomic indicators.
This is evident from the fact that the rate of growth in the economy in the year 2006 was 5.8% as compared to the growth rate in the year 2007, which has been found to be 6.3%. The “inflation projection” has been relaxed to 6.5% (as per Indonesia state budget of 2007) from 8% (2006).
Indonesia State Budget – Highlights:
The country moved ahead to bring in certain reforms in education, health care and social projects.
Hence spending for activities related to the above increased in the FY 2007.
The Government approval of Indonesia State budget allocation was Rp 763.6 trillion or equivalent to USD$83.4 billion for the FY 2007.
Even though, expenses escalated fiscal policies of the country remained stable and the deficit recorded was only 1.1% of gross domestic product or GDP.
Expenses related to fuel subsidies and electricity subsidies decreased but despite that made up 17% of expenses of the central Government.
It was ascertained by the Government in Indonesia that tax receipts would manifest a 20% escalation in the year 2007.
Budget Allocations for the Year 2007:
For educational purposes, the government had alloted Rp 43.5 trillion.
The agricultural sector received Rp 8.7 trillion.
Approximately, Rp 17.1 trillion was allocated for the health sector.
The National police force was assigned Rp 19 trillion for carrying out various activities falling within its purview.
The public works division received Rp 24.2 trillion as financial assistance.
Finance division was assigned Rp 9.4 trillion in the Indonesia State budget for the FY 2007.
For defense purposes, a total of Rp 31.3 was alloted.
The transport industry received Rp 10.4 trillion as budget allocation for its various activities.