The City Council approved Friday the long-awaited revision of the 2008 city budget at Rp 20.39 trillion (US$2.21 billion), above the Rp 20.25 previously agreed, causing further disagreement with the city administration.

Governor Fauzi Bowo said Friday the revised budget with the extra 143 billion contained programs financed by uncertain sources, such as unspent funds from last year's allocation.

"I worked to erase such programs to make the budget more efficient. But when we eliminate the program in one line item, they popped up in another line item," he said.

He also questioned the revenue targets as the revised budget assumed the city would be receiving funds from the central government.

"We have to improve our performance and not base city revenue on an assumption. If the assumption is wrong, it can cause a budget deficit. It's fine to have a budget deficit as long as it's reasonable and manageable," he said.

Last March the 2008 city budget was initially approved at Rp 20.59 trillion. In July the city administration decided to cut the budget and set the revised budget at Rp 20.05 trillion.

During budget deliberations, both the city administration and the city council agreed to set the revised budget at Rp 20.25 trillion.

However, the city council approved the higher figure Friday.

In the final revision, several line items were expected to get an increase, including some Rp 143 billion for revenue sharing and Rp 96.39 billion for regional revenue. The revision also stated seven working units would receive the Rp 143 billion.

The budget approval required a vote as the National Mandate Party (PAN) faction refused to approve it.

Of the 44 councilors attending the plenary session, the PAN faction was represented by only two members, M. Agus Darmawan and Daniel Abdullah Sani. The budget approval was therefore carried by the rest of the councilors.

Daniel said his faction regretted the allocation of the Rp 143 billion because the process lacked transparency.

New budget allocations in the 2008 revised budget:

1. Public Order Agency

Rp 59.24 billion for the 2009 general election equipment, field uniforms for agency officials and security during election period

2. The Jakarta Elections Committee

Rp 8 billion for operational costs (provincial, municipal and regency)

3. Board for National Unity

Rp 10.49 billion for election monitoring and education about the new election law

4. The Funeral Service Office

Rp 63 billion for land procurement for Tanah Kusir Selatan, Pondok Ranggon and Cipinang Besar Selatan cemeteries

5. Sports and Youth Agency

Rp 1.17 billion for the rehabilitation of 13 sports halls

6. Central Jakarta Housing Agency

Rp 517.99 million for canal dredging and road repairs in Johar Baru and Sawah Besar.

7. Public Works Agency

Rp 1.5 billion for Halim Dam construction

Source: City Council

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