Bappenas suggests government to improve state budget effectiveness

Bappenas suggests government to improve state budget effectiveness

Bappenas Deputy Head for Economic Affairs Bambang Prijambodo attended a national seminar held at the Bappenas Building in Jakarta on Monday (August 12, 2019). (ANTARA/AstridFaidlatulHabibah).

Jakarta (ANTARA) - The National Development Planning Agency (Bappenas) has suggested the government to increase effectiveness of the state budget annually to ensure optimal implementation of development programs.

State expenditures through the state budget have increased five folds, from Rp400 trillion in 2004 to Rp2,000 trillion in 2019. However, effectiveness of the state expenditures should be improved, Bappenas Deputy Head for Economic Affairs Bambang Prijambodo remarked at a national seminar held at the Bappenas Building in Jakarta on Monday.

"As far as I remember, it (the state budget) has increased five folds," he noted.

However, the annual increase in the state budget is still not sufficient to boost the national economic growth and improve the quality of various supporting sectors, he added

"(It is still not sufficient), particularly to spur economic growth, improve the quality of poverty eradication efforts, and reduce disparities," he emphasized.

The size of the state budget is one of the homeworks that the government should prioritize since people are pinning high hopes on it to solve a wide range of issues.

"The fiscal function highly varies. The fiscal function shoulders huge burden, including serving as a stimulus, distributing development gains evenly, and reducing disparities," he stated.

Bappenas Director of State Finance and Monetary Analysis Boediastoeti Ontowirjo seconded Prijambodo's view, affirming that despite a significant increase in state expenditures from 2011 to 2018, it is still far from sufficient to boost the domestic economic growth.

"Have the method and plan reflected quality expenditures as expected? The increase in spending at ministries and non-ministerial government institutions has not increased the economic growth optimally," he added. Related news: Draft state budget should mirror national economic strength: Jokowi

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