Jakarta, ID
Monday, May 28 2012, 23:07 PM

Business

Budget deliberation at risk of deadlock: Golkar

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The Golkar Party warned on Saturday the upcoming deliberation of the 2011 draft state budget at the House of Representatives would face a deadlock if the government refused to approve the party’s demand for Rp 8.4 trillion (US$916 million) in aspiration fund.

Golkar politician Harry Azhar Azis, who chairs the House’s budget committee, said the party would insist that the next state budget allocate the fund as part of development spending as Finance Minister Agus Martowardojo had never rejected the initiative.

“The finance minister said the proposal could be discussed together,” Harry said as quoted by kompas.com.

Coordinating Minister for the Economy Hatta Rajasa had previously said the aspiration fund was unnecessary. Earlier Agus said the allocation of aspiration fund for House lawmakers would violate several regulations.

According to the proposal each of the 560 House lawmakers would receive Rp 15 billion to help develop their respective electoral districts as part of their accountability for their constituents. The initiative is supported by Golkar and President Susilo Bambang Yudhoyono’s Democratic Party, the country’s two largest parties.

“If the rejection represents the government’s official stance, the budget deliberation will face a deadlock,” Harry said.

The House and the government are slated to start deliberating the draft budget on Tuesday.