BUDGET FOR 2010 FISCAL STIMULUS LESS THAN 1 PCT

Jakarta, Sept 13 (ANTARA) - The Finance Ministry has predicted budget allocations for the 2010 fiscal stimulus program will not exceed 1 percent of the gross domestic product (GDP).

"In total, the percentage will be less than 1 percent," chief of the ministry's fiscal policies board Anggito Abimanyu said on Sunday.

The figure fell below budget allocations for the 2009 fiscal stimulus program which cost Rp73.3 trillion or 1.3 percent of the GDP, he said.

"Next year the greatest stimulus will come in the form of a cut in the tariff of income tax on corporate taxpayers to 25 percent," he said.

In addition, tax on publicly-listed companies would be lowered by another 5 percent, not to mention the government-borne taxes, he said.

He declined to mention how much the 2010 fiscal stimulus program would cost. But asked if it would reach around Rp60 trillion, he said "Yes, it could be,".

He said direct spending for the fiscal stimulus package which reached Rp12.2 trillion in 2009 would fall in 2010 as the economy showed signs of recovery.

"The economic condition has begun improving so that the private sector is expected to grow and contribute to a reduction in government spending," he said.

Direct spending for the 2010 stimulus program would be incorporated to government agencies' regular progams, he said.

"Next year much of spending will go to special allowances for the development of state finance (TKPKN) related to bureaucractic reforms at 11 government agencies," he said.***2***