Nearly 30 percent of the state budget had gone to central and regional government personnel`s salaries, 20 percent to the education sector, 15 percent to subsidies and the rest to capital expenditure, he said at a national meeting of the Indonesian National Building Contractors Association (Gapensi) here on Wednesday.
The higher amount of budget funds allocated for subsidies reduced the development budget and a lack of infrastructures in regions made the local people`s economy stagnant, he said.
"It is the farmers who have fallen victim. Consequently, the prices of commodities are on the increase," he said.
He said the government could keep down the amount of budget allocations for fuel subsidies. "I think it will be quite proper if the government raises the price of fuel oils before the fasting month of Ramadhan," he said.
Not only the central government but also regional administrations should reduce budget allocations for state employees` salaries to increase development budget, he said.
The higher amount of budget allocations for subsidies also had sent a bad news to national building contractors. "Many building contractors will quit because of the higher amount of subsidies," he said.
He said building contractors should not be involved in a so-called "project mafia". "From the standpoint of law, the mafia is wrong. I believe you object to it but you must give up and be involved in it," he said.
(Uu.S012/H-NG/H-YH)
Editor: Priyambodo RH
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