Page:Draft Constitution of the Republic of the United States of Indonesia.djvu/18

 territories are able to cover the expenses connected with the exercise of their governing powers from their own revenues.

3. Without prejudice to the principle referred to in the preceding paragraph, the distribution of the sources of revenue shall concur as much as possible with the division of governing powers referred to in part 1 of this section.

4. Provisions can be established by federal law, to levy surcharges on taxes of the participant territories on behalf of the federation.

1. Deficits in the ordinary expenditure of the budget of the participant territories shall be covered by contributions from the exchequer of the Republic of the United States of Indonesia in accordance with regulations to be established by federal law.

2. Deficits on the extraordinary expenditure can be covered by such contributions.

1. Foreign loans are contracted exclusively by the Republic of the United States of Indonesia.

2. The Republic of the United States of Indonesia can contract loans abroad for the benefit of participant territories at the request of these participant territories.

3. For contracting loans within the jurisdiction of the Republic of the United States of Indonesia, the participant territories require previous approval of the Republic of the United States of Indonesia.

1. Budgets of participant territories, of which the deficits are to be covered by the federal exchequer or by means of loans require the approval of the federal Government.

2. In cases to be indicated by federal law and in accordance with regulations to be established by that law, the approval referred to in the preceding paragraph can be made dependent on changes in the budgets as considered necessary by the federal Government in agreement with the Senate.

1. The Republic of the United States of Indonesia is not concerned with budgets of participant territories other than those referred to in article 58.

2. Nevertheless, in case of obvious financial mismanagement, the federal Government in agreement with the Senate can require from the participant territory concerned that certain changes be made in its budget.

3. The federal law defines the actual meaning of financial mismanagement, establishes regulations for the exercise of the competency referred to in the preceding paragraph and regulates the consequences with respect to possible suspension of the effectuation of the concerning parts of the budgets.