Commission VII of
Parliament saw the need of Public Relations campaign to explain the meaning of
the word ‘subsidy’ and ‘budget’ to the people because very often people were
confused about the meaning of the two words. The result was that the people
thought that the Government did not stand on the side of the people. :”The
message should be: not to eliminate subsidy bit to relocate budget. People who
don’t own any vehicle are not enjoying any subsidy in any from but perhaps only
multiplier effect like a driver earning salary from his employer who owns a
car. In reality the low class people are not getting anything from oil subsidy”
Satya Wirayudha, member of Commission VII told Business News [25/8].
In principle, the Parliament supported decision of the elected
President Joko Widodo to reduce subsidy but simultansously the Government must
build the right perception of subsidy. The budget re allocation plan with
reference to RUEN, if the new Government did not publicise paradigm through PR
the budgeting policy would be branded as “not being on the side of the low
class people.”
The fiscal instrument was in the domain of the
Government. The Parliament could not touch fiscal; but Commission VII of House
saw trade balance as related to import of
oil and export of gas, so current deficit account was inseparable from the mathematics of
fiscal, in the domain of Board of Fiscal Policy the Ministry of Finance. “We
house make policies, but we are not executors. The effort to unveil fiscal is
inseparable from the swelling oil subsidy budget.”
Meanwhile anxiety over inflation as consequence of
subsidy withdrawing was only applicable to the upper middle class. If price of
oil were increased and subsidy was directly given, there would be downturn of
purchasing power of the upper middle class people. “People use to say increased
oil price means inflation, but it applies only to certain strata of people.”
The Parliament also focused the perception of fiscal room
as set forth by President SBY on august 25 last. House saw that the case of
fiscal as the Government’s capacity to manage cashflow. The state’s budget
which was fully allocated had no room for maneuvering. The wish to reduce State
Budget 2015 burden by the elected President was hard to realize due adverse
cashflow.
“whatever his ambition, President Jokowi had no wide room
for playing with fiscal. If the state was broke, the question is what had money
been used for so far? Paying debt? So to pay subsidy is not the right thing. It
is right if the money were used for propelling economy, moreover tax ratio had
increased by 15% and Government’s revenue would increase.” (SS)
Business News - August 29, 2014
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