Govt programs require 'coordination'<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
Out of control corruption is apparently not the only factor
\nhindering the successful implementation of many development
\nprograms in the country.<\/p>\n
According to a recent study by the Manila-based Asian
\nDevelopment Bank (ADB), if a government fails to properly plan
\nthe programs and budgetary needs of the state institutions that
\nwill implement them, then it is very likely they will miss their
\ntarget.<\/p>\n
Such poor management of public finances will also lead to
\nfurther corruption and poverty, unless they can manage funds in a
\nmore systemic and institutionalized manner.<\/p>\n
In its Country Governance Assessment Report specific on
\nIndonesia that it launched last week, ADB pointed out that
\nwithout synchronizing planned policies with their budgets, a
\ndisorientation in their implementation would occur.<\/p>\n
\"The government must link budget formulation with policy
\nplanning so that the budget identifies institutional
\nresponsibility toward the policies,\" the report said.<\/p>\n
When budgets do not identify costs associated with the
\ndelivery of programs, the report explained, institutions do not
\nregard medium-term planning.<\/p>\n
\"As a result, the budget planning process does not take
\ncontingent liabilities and program continuity into account.\"<\/p>\n
In other words, institutions tend to operate on the basis of
\nseparate, short-term programs instead of linking them into a
\nbroader, long-term development policy.<\/p>\n
Such a condition will also result in a higher possibility of
\nunderspending and unjustified year-end activities of the budget,
\nboth of which are prone to corruption.<\/p>\n
ADB therefore suggests changes in the budgetary process and in
\nthe organizational design of the system of administration.<\/p>\n
\"The government should review the procedures and practices
\nassociated with revising budgets, closing books, and carrying
\nover funds at the end of the financial year,\" the report said.<\/p>\n
Even though Indonesia's Government Regulation No. 105\/2000 on
\nregional government financial management and accountability
\nstipulates performance-based budgeting, training and capacity
\nbuilding -- especially for regional administration officials --
\nwould still be needed to overcome the changes.<\/p>\n
\"The budget planning process in the regions is also
\novershadowed by uncertainties related to fiscal transfers,
\nespecially for regions that are highly dependent on the central
\ngovernment's general allocation funds (DAU) and have little
\nrevenue beyond that,\" it said.<\/p>\n
The report explained that as most public institutions have
\nlarger expenditure obligations than their received budgets can
\ncover, many of them finance a significant proportion of their
\noperations from revenues that are not registered in the budget,
\nor off-budget sources, mostly in the form of funds from state-
\nowned enterprises.<\/p>\n
\"Such 'shadow budgets' lacks transparency and the flow of its
\nfunds are impossible to control, thus inviting corruption,\" the
\nreport said.<\/p>\n
ADB said that an independent and well-functioning external
\naudit function and efficient internal audit functions are
\ntherefore important to detect such corrupt practices.<\/p>\n
Giving the Supreme Audit Agency (BPK) more authority would
\nmean more time and more budgetary commitments from the
\ngovernment, as the external auditing agency is still understaffed
\nand underfunded.<\/p>\n
The BPK currently has a staff of about 2,800 -- or only a
\nthird of the government's internal audit agency, the Development
\nand Finance Comptroller (BPKP) -- to audit the activities of some
\n3.5 million civil servants in more than 30 ministries and 437
\ndistricts in 32 provinces.<\/p>\n
In comparison, BPKP has a staff of 6,800, including 5,500
\ncertified auditors, operating through seven directorates in its
\nhead office and 25 regional offices.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-programs-require-coordination-1447893297",
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"sponsor": "Okusi Associates",
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