"In the last five years, nationally, budget absorption in the third and fourth quarters usually reached 35 percent, and in December, (government officers, who manage the state budget) only have 15 effective working days, so this needs to become a matter of concern for all," Ministry of Finance's Director of Budget Implementation, Tri Budhianto, stated in Padang on Tuesday.
Budhianto conveyed the statement at the coordination meeting on the implementation of the 2022 budget themed "Accelerating Spending of the Ministries/Institutions for Economic Recovery."
The state budget is one of the most important components of economic recovery, especially after the COVID-19 pandemic, he highlighted.
"Hence, it is necessary to ensure that the state budget is effective in its role in reviving the economy," he affirmed.
Hence, he stressed that it was important to expedite the process of realizing budget absorption to accelerate economic growth and reduce contraction.
According to Budhianto, when absorption of the state budget is only expedited at the end of the year, then several risks will emerge.
"Firstly, the society cannot feel the benefit (of the budget)," he noted. Budhianto cited as an example that communities should have enjoyed a newly built bridge if its construction is started by the year's start and not the end.
Secondly, the governance of the state budget at the year-end usually brings up several questions.
"A trade-off happens between acceleration and accuracy," he stated.
He also figured that the year-end budget absorption was usually done hastily.
"Let us be honest, who still checks the documents after so many budget years?" he questioned.
Budhianto noted that the risk of hurried budget absorption at the year-end also included arrears.
"Arrears must be allocated for the next year, so next year's activities are sacrificed for paying the debts," he noted.
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Translator: Ikhwan W, Kenzu T
Editor: Suharto
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