Efficiency put forward in drafting 2006's budget

Efficiency put forward in drafting 2006's budget

Muninggar Sri Saraswati and Rendi A. Witular, The Jakarta Post, Jakarta

The current inefficiency in governmental institutions --
ministries, state agencies and local administrations -- has put
unacceptable burdens on the state budget.

Concerning this matter, President Susilo Bambang Yudhoyono
said in a speech before governors and high-ranking bureaucrats at
the State Palace on Wednesday that officials should put more
emphasis on efficiency when proposing routine and development
expenditures for next year's budget.

"We have to examine the efficiency of the programs proposed
for the upcoming 2006 state budget. I hope all governors (and
officials) comply with regulations on state finance so that the
budget will be more efficient and accountable," he said.

Susilo emphasized that understanding the regulations would
help governors and bureaucrats avoid "gray" areas when drafting
development programs and budgets, and thus prevent financial
abuses.

"Please, study the regulations comprehensively when drafting
budgets as it will keep you away from trouble in the future. The
rules were made to ensure that you are accountable for state
expenditure," he said.

Governors from the country's 33 provinces gathered in the
capital for a three-day meeting with State Minister of National
Development Planning Sri Mulyani Indrawati and state officials in
order to draft development and routine programs for 2006.

The programs will be used to draft the 2006 state budget
before being submitted to the House of Representatives for
deliberation in August. The agreed programs will also be used by
governors to draft their own provincial budgets.

Susilo hoped the draft state budget would be endorsed in
October. The implementation of the budget is expected to start on
Jan. 1, 2006.

Previous state and provincial budgets have demonstrated that
both the central government and local administrations have
ignored efficiency, as reflected in the gradually increase in
routine expenditures every year. Routine expenditures include
such things as civil servants salaries, operational equipment and
interest on debts.

At the meeting, Susilo also urged governors to be more focused
on serving the interests of the private sector next year in a bid
to help boost regional economic activity, which was badly needed
in order to help absorb manpower and reduce unemployment.

"Governors should give priority to job creation when
developing their regional economies, as well as taking an
international perspective to attract foreign investors," he said.

Since the enactment of the autonomy law, many provincial
administrations have imposed various taxes on the business sector
in an effort to generate revenue for the province.

But many of these policies backfired because they effectively
discouraged investment and contributed to Indonesia's high-cost
economy.