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