East Kalimantan Experiences Budget Deficit
25 February 2014 15:18 WIB
TEMPO.CO, Balikpapan - The East Kalimantan province has cut 50 percent of aid for the North Kalimantan province due to a deficit Rp 1.6 trillion deficit in its provincial budget this year.
"We have to reduce budget expenditure because of that," said Nikolas Pangeran, member of the House of Representatives" Commission III on Tuesday, February 25, 2014.
According to Nikolas, another option is for the government and the Legislative Council (DPRD) to reduce budget for big projects such as the Balang Island bridge construction, tollroad, Balikpapan Stadium, and Samarinda Airport.
"Cutting 17 percent of budget items, and [reducing] North Kalimantant budget by 50 percent," he said. Currently the Council is yet to decide which options that will be taken.
Nikolas said that the deficit was caused by planning errors in calculating revenue.
Economic observer from Mulawarman University Aji Sofyan Effendi, said that East Kalimantan budget deficit is due to lack of provincial expenditure. The low international selling price of oil causes budget realization to not reach its target.
Aji stated that the world's oil selling price had decreased from US$107.20 last year to US$105.8 per barrel. The decrease influenced budget assumption in the State Budget structure. "This condition affects the provincial budget assumption in East Kalimantan," he said.
SG WIBISONO