"We notice that the state budget now is overburdened by routine expenditures and the cost of subsidies," the House Speaker said."We notice that the state budget now is overburdened by routine expenditures and the cost of subsidies," the House SpeakerJakarta (ANTARA News) - The government needs to gradually cut its subsidy and routine expenditures that have so far been burdening the state budget, House of Representatives Speaker Marzuki Alie said.
"We notice that the state budget now is overburdened by routine expenditures and the cost of subsidies," the House Speaker said at a House plenary session here on Monday.
Marzuki said the government should have given a bigger portion to capital and goods expenditures in the state budget so as to boost the country`s economic development.
Capital and goods expenditures were actually the components of the development budget and thus could boost economic growth, he said.
The House Speaker said the House of Representatives feared that Indonesia`s economic growth would slow if the government did not take anticipatory and measured steps to prevent it.
He said the government might find that the 2012 State Budget was more difficult to implement than the budgets of previous years as the global economic conditions were still uncertain.
Noting that the 2011 State Budget had not been absorbed optimally, Marzuki said this indicated the existence of problems in the state`s financial management.
"There are several aspects that need to be evaluated such as weaknesses in the implementation of activities and coordination among planners and executors," he said.
The weaknesses caused the government to frequently revise the budget. Apart from that, when the budget implementation accumulated at the end of the year, the government in absorbing the budget tended to abide by the accountability and prudent principles, he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
