SBY's budget review

SBY's budget review

From Republika

The third key priority of President Susilo Bambang Yudhoyono
to review the 2005 state budget and law enforcement measures is
interesting to note.

In regards the budget and its irregularities, there are three
main causes of misappropriation.

First, the absence of any budget allocation for holiday
allowances prompts the use of funds from other expenditures or
via alternative means.

Second, various government activities are financed by funds
from unclear sources, such as the anniversary or Independence Day
celebrations and official and religious gatherings. A special
budget item for general purposes should be created.

Third, in order to ensure the smooth execution of these
"customary" practices, the budget is sometimes procured through
markups.

The new president is therefore expected to alter these
practices and eliminate other causes of waste.

Two years ago, the head of the National Development Planning
Agency revealed that budget leakage could be about 50 percent. To
my knowledge, the three factors above may have contributed
considerably to the loss, despite the proper management of public
funds.

DJAMALUDDIN
Bandung