STATE EXPENDITURES TO REACH RP1,009.5 TRILLION: PRESIDENT

Jakarta, Aug 3 (ANTARA) - President Susilo Bambang Yudhoyono said state expenditures are projected to reach Rp1,009.5 trillion, in the 2010 Draft State Budget or Rp3.8 trillion more than in the Revised 2009 Draft State Budget 2009 (RAPBN-P).

"Hence, the budget deficit in 2010 is anticipated to be Rp98.0 trillion (1.6 percent of GDP)," the president said in his state-of- the-nation address at an extraordinary plenary session of the House of Representatives (DPR) here Monday.

This amount was actually a decline by Rp35.0 trillion, compared
to the projected target in the Revised 2009 Draft State Budget which stood at Rp133.0 trillion (2.5 percent of GDP), he said.

In addition, the president said that the planned state revenue and expected grants will reach Rp911.5 trillion in 2010, tax revenue is envisaged to reach Rp729.2 trillion, whereas non-tax revenue (PNBP) is estimated to total Rp180.9 trillion.

Regarding state expenditures, in order to sustain the development target as stated to be the priorities in the government work plan (RKP) 2010, the government was planning in the bill of the state budget 2010 to allocate the budget of the central government for Rp699.7 trillion.

"I am convinced that we can draw the maximum benefit from the government budget in order to reach the goals we have set in the RKP 2010," Yudhoyono said.

Apart from that, the president said the priority of expenditure will be more focused for seven national prioritized programs.

Firstly, to improve the welfare of state apparatus and its pensioners.

Secondly, to continue the entire people's welfare program such as the National Self-Supporting Empowerment Program (PNPM), School Operational Assistance (BOS), Public Health Insurance (Jamkesmas), Aspiring Family Program (PKH) and Subsidized Rice.

Thirdly, to continue the infrastructure development of transportation, agriculture, energy and other labor-intensive projects.

Fourthly, to stimulate the revitalization of industry and the recovery of the business community.

Fifthly, to continue the bureaucratic reform with the purpose of materializing good governance and improving public services.

Sixthly, to raise the budget for operation, maintenance and procurement of the military (TNI) main weaponry system (alutsista).

Seventhly, to maintain education budget at a minimum of 20 percent of the state budget, the president said.

On the basis of the macro economic framework in 2010 and the development priorities of the Government Work Plan(RKP) 2010, the state revenue and grant are envisaged to reach Rp911.5 trillion.

The total of Rp911.5 trillion showed an increase by Rp38.8 trillion from the target of the revised bill on the state budget of fiscal year 2009 (RAPBN-P).