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Kalla tells ministers to prepare for the budget cut
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Vice President Jusuf Kalla speaks to President Joko “Jokowi” Widodo during a working meeting at the Public Works and Public Housing Ministry in Jakarta on Tuesday, during which the 2016 state budget revision was discussed. (Antara /Puspa Perwitasari )
V
ice President Jusuf Kalla has called on ministers to drop inefficient programs funded by the state budget and focus on programs that have been given high priority.
Speaking to Cabinet ministers at a working meeting at the Public Works and Public Housing Ministry in Jakarta to discuss the 2016 state budget revision on Tuesday, Kalla stressed that programs designed by the ministries should have a multiplier effect on economic growth.
"Budget effectiveness should be judged by its benefits to development and community welfare. We are gathered here to evaluate the effectiveness of the budget," Kalla said.
Usually, a state budget revision talks are based on expectations of higher budget allocations, said Kalla, adding that for the first time the government would cut allocations in the planned budget revision.
"Due to budget cuts, all ministries must be prepared to make adjustments by cutting non-priority budgets," he added.
Kalla recorded that state revenue in 2010 was Rp 1 quadrillion (US$75.82 billion), which was far higher than the Rp 495 trillion revenue in 2005. While in 2015, the government posted Rp 1.8 quadrillion in state revenue. Spending was Rp 500 trillion in 2005, Rp 1.1 quadrillion in 2010 and Rp 2 quadrillion in 2015.
“Unfortunately, this increase was not accompanied by better economic growth. The country's economy grew by 5 percent in 2005, 6.1 percent in 2010 and only 4.9 percent in 2015. This means there is something wrong in the way we apply a budget that does not have high added value," he added.
Meanwhile, President Joko "Jokowi" Widodo reiterated his call on his ministers to implement deregulation to accelerate infrastructure development within the next five years.
“If we remain stuck on rules we made, we will not be free to move quickly to catch up with global competitiveness,” Jokowi said. (bbn)
