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Court allows 'flawed' budget to stand

The Constitutional Court declared on Wednesday the 2008 state budget was in violation of the Constitution because it failed to allocate 20 percent for education spending

The Jakarta Post
Jakarta
Thu, August 14, 2008

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Court allows 'flawed' budget to stand

The Constitutional Court declared on Wednesday the 2008 state budget was in violation of the Constitution because it failed to allocate 20 percent for education spending.

This was the third time since 2004 the court found the government and the House of Representatives guilty of deliberate defiance of the Constitution's mandate on education spending, thereby undermining the Constitution and violating the rule of law.

But the verdict was a hollow victory for the plaintiffs, the Association of Indonesian Teachers (PGRI) and education activists across the country, because, as in the previous verdicts, the court said the defective 2008 state budget would be allowed to stand. It said this would avoid the fiscal disorder that might result from the revocation of the budget.

"Education spending in the 2008 revised state budget accounts for 15.6 percent of the total budget, which breaches the Constitution. But in order to avoid governmental disaster, the state budget should stand until the 2009 budget comes into effect," court chief Jimly Asshiddiqie said.

In its 108-page verdict, the court said the decision was intended to encourage the government and regional administrations to allocate at least 20 percent of their budget for education, excluding human resources development spending.

"The court once again reminds lawmakers to comply with their constitutional obligation to provide a minimum of 20 percent of the budget for education in the 2009 state budget at the latest," Jimly said.

Violation of the Constitution is a serious offense for a president, and can lead to impeachment.

Article 31, paragraph 4 of the amended Constitution stipulates that education spending account for at least 20 percent of total state and regional budgets. The amendment was made to ensure human investment in Indonesia, which lags behind other countries.

The PGRI filed a judicial review of the 2008 revised state budget because only Rp 154.2 trillion (15.6 percent of the total state budget of Rp 989.5 trillion) was earmarked for education.

However, the government claimed the education budget amounted to 21.8 percent of the state budget, which was originally set at Rp 707.6 trillion, excluding energy subsidies and debt interest payments. But the court rejected the government's explanation.

Finance Minister Sri Mulyani Indrawati said the budget revision was a force majeur because of external factors, including the soaring global price of oil.

In 2006 and 2007, the court also ruled the state budget defective for failing to meet the minimum education spending. But the government remained in defiance of the constitutional mandate, saying the requirement was a long-term ideal.

In 2006, the government incorporated teachers' salaries into the education budget. The court supported the government's move, saying it would encourage the government to fulfill the minimum education spending.

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