Challenge for govt: Spending enough for education, or else<\/p>\n
Riyadi Suparno, The Jakarta Post, Jakarta<\/p>\n
Believe it or not: Just nine regular citizens, mostly teachers
\nfrom the small town of Banyuwangi, East Java, have set the wheels
\nin motion that could lead to the possible impeachment of
\nPresident Susilo Bambang Yudhoyono.<\/p>\n
These nine people were apparently unhappy that the government
\nwas dragging its feet on its constitutional obligation of
\nallocating 20 percent of its budget for education.<\/p>\n
They were unhappy that the government was merely promising to
\ngradually work up to that and fulfilling the obligation some time
\nin 2009. So, they took their case to the Constitutional Court.<\/p>\n
In its verdict issued last week, the court met their demands
\nand obliged the government to allocate at least 20 percent of its
\nbudget for education, starting Jan. 1, 2006, to conform with the
\n1945 Constitution.<\/p>\n
The verdict surprised both the government and the House of
\nRepresentatives, which have been investing a lot of energy and
\nresources to put together the 2006 budget.<\/p>\n
With the education budget set at Rp 40 trillion (US$4
\nbillion), or 11 percent of the total spending for 2006, the
\ngovernment and the House now has two unpleasant options: revising
\nthe budget to conform to the ruling, which would be a near
\nimpossible fiscal task indeed, or ignore the verdict, which could
\nhave wider legal and political ramifications.<\/p>\n
Conforming to the ruling means that the government and the
\nHouse have to redo the 2006 draft budget, the deliberation of
\nwhich is nearing completion. Revising the budget itself is not a
\nbig deal, the main concern would be how to find the additional
\nfunding to increase the education allocation.<\/p>\n
To conform with the ruling, assuming that the central
\ngovernment's expenditures remain the same at Rp 375 trillion next
\nyear, education spending must be jacked up to at least Rp 75
\ntrillion.<\/p>\n
In fact, the Ministry of Education will get the largest budget
\nallocation of all the government ministries next year, nearly Rp
\n31.5 trillion, while the Ministry of Religious Affairs, which
\noversees and funds state Islamic schools from elementary to
\nhigher education levels, will have Rp 8.3 trillion at its
\ndisposal. Together, they have will spend approximately 40
\ntrillion on education.<\/p>\n
If the government wants to comply with the court's ruling, one
\nalternative to meet the target is to shift funding from other
\nministries to the ministries of education and religious affairs.<\/p>\n
Now, if we look at the ministries with relatively large
\nbudgets for next year, the one that would get the next largest
\nallotment would be the Ministry of Defense at Rp 23.6 trillion.
\nIt is followed by the Ministry of Public Works and the National
\nPolice at Rp 13.2 trillion each and the Ministry of Health with
\nRp 11.5 trillion.<\/p>\n
Looking at the budget of those ministries, it is still
\npossible for the government to shift a portion of the money from
\nthe Ministry of Defense, and possibly from the police, but not
\nfrom public works or health.<\/p>\n
Reducing the budget of those two ministries is not recommended
\nat all as it would result in a slowdown of infrastructure
\nprojects and weaker health services. Both are in a dire state at
\npresent: infrastructure for maintaining the momentum of economic
\nrecovery, while health services are needed to help the poor.<\/p>\n
Reducing the budget of the Ministry of Defense would possibly
\nhurt the military most, which plans to revive its territorial
\noperations down to the village level. But we can cope with that,
\nand would possibly be a lot happier without the soldiers and
\nmilitary agents in every neighborhood and village.<\/p>\n
However, with the reduction of the military budget, we might
\nhave to cope with the military's foot dragging in freeing
\nthemselves from their many business interests -- a bad practice
\nthat has been going on for decades.<\/p>\n
Similarly, by slightly reducing -- emphasis on slightly -- the
\nbudget for the police is still acceptable, but of course at a
\ncost. With budget reductions, we might have to tolerate more
\npetty crimes or extortion from our underpaid police officers,
\nwhich might irritate many of us. Reducing the budget of the
\npolice could also undermine their work, especially the anti-
\nterror operation.<\/p>\n
Considering these risks, the government would likely not be
\nable to shift enough money from other sectors to education. Even
\nif the government could take some portion from the Ministry of
\nDefense and the police, it would still be far from enough to meet
\nits constitutional obligation.<\/p>\n
Despite such difficulties, the government actually has a very
\ngood option to boost education funding to 20 percent of the
\nbudget next year... by cutting the subsidies completely,
\nespecially fuel subsidies which will remain high next year
\ndespite this year's drastic cuts. The government has allocated Rp
\n80 trillion for such subsidies next year, of which Rp 68 trillion
\nis for subsidizing gasoline, diesel and kerosene.<\/p>\n
By only reducing by half the fuel subsidies next year, the
\ngovernment would be able to raise its education budget to 20
\npercent, as required by the Constitution and the Constitutional
\nCourt's verdict.<\/p>\n
Cutting half the fuel subsidies next year requires political
\ncourage on the part of the government as it would likely draw
\nwidespread protests from many people. But learning from the two
\nfuel price increases this year alone, the government is seen as
\nquite capable in managing the impacts of those.<\/p>\n
If the government has no political courage to cut subsidies,
\nit still has another option to meet the constitutional
\nresponsibility, i.e. by creating a larger budget deficit.<\/p>\n
The government has projected a Rp 20 trillion deficit next
\nyear, equal to 0.7 percent of the gross domestic product.
\nBoosting the deficit to Rp 55 trillion, or even 60 trillion,
\nwould not pose any serious problem for the country's economy as
\nit would amount to only about 2 percent of GDP, which is
\nconsidered by many to still be relatively healthy; compare it to
\nthe 3 percent deficit ceiling for countries of the European
\nUnion.<\/p>\n
Also, financing the deficit should not be a problem for the
\ngovernment as it has quite successfully done so in the past years
\nby issuing bonds, both for the domestic and international
\nmarkets.<\/p>\n
So, the options are wide open for the government to choose.
\nAnd yet, if the government remains defiant and does not abide by
\nthe court's ruling, it exposes itself to a greater danger ahead.<\/p>\n
By not abiding by the court's ruling, the government sets a
\nbad precedent for the whole country by literally snubbing its
\nnose at the legal system. And this would only worsen the already
\nbad law-abiding culture in the country.<\/p>\n
Worst of all, by not upholding the court's ruling, the
\ngovernment could be legally classified as violating the
\nConstitution, which is strong grounds for anyone not happy with
\nthe current government to mount an impeachment process of
\nPresident Susilo.<\/p>\n
Now, the choices are there, and it is up to the government to
\ndecide its own fate.<\/p>",
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