Volatile oil prices will affect budget allocations
Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 07/14/2009 3:19 PM
Fluctuating global oil prices will impact the state budget in the next two years, resulting in a shift in budget allocations, Finance Minister Sri Mulyani Indrawati said Tuesday.
"Oil prices, whose fluctuations cannot be predicted, are until next year projected to have large deviations. Prices may range between 45 and 120 [US dollar per barrel]," she said while launching a book on guidance for planning and budgetary reform.
“We will feel continued effects of fluctuating commodity prices on the state budget. Budget allocations may change,” she added.
A change in budget allocations will trouble ministries and government agencies in channeling their budgets for priority programs to spur growth amid the global economic crisis.
Therefore, Mulyani said, ministries and government agencies should be careful in designing their budget to be able to withstand the impacts of the crisis.
