Tuesday, 10 July 2018 09:13

President Wants Improvement in System of Government Spending

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Rapat Terbatas Di Istana Bogor 09.07.2018 Rapat Terbatas Di Istana Bogor 09.07.2018 ANTARA

President Joko Widodo (Jokowi) told his ministers and heads of other government agencies to improve system of utilization of budget funds to stop the practice of waiting toward the end of year to start use the budget.

"Improve the system of using the budget fund not to let work pile up toward the end of year, but keep observing the quality of output," Jokowi said at a limited cabinet meeting discussing realization and prognosis of implementation of the 2018 state budget at the Bogor State Palace on Monday.

The head of state said he wanted all programs and strategic projects to be executed and completed as scheduled but with good governance.

"Transfers of funds to the regions and rural funds must not be delayed and minimize government funds idle in banks," he said.

The President said he appreciated acceleration of development program and services to the people and 12.1 percent growth in 2018 budget spending by ministries and state agencies in the first half of 2018 , far exceeding realization which grew only 0.4 percent in the same period last year.

"I ask the momentum of achievement in the first semester of 2018 to be maintained and improved in the second half of the year," he said.

Jokowi reminded the ministers of the big challenges ahead , especially related to global economic uncertainties that calls for harder work and great focus on work to finish all programs as scheduled.

He also reminded the ministers of the need for efficiency such as in goods procurement , unnecessary official travels, meetings and package meetings and other non productive procurement.

He thanked the ministers and heads of government agencies, governors, regents/city mayors for improved performance shown in the first half of this year.

"I see improvements in the implementation of the state budget in the first semester of 2018 in comparison with the same period last year," he said.

Implementation of the state budget in the first half of 2018 improved with lower budget deficit, down 36.8 percent, primary balance also was "very good" becoming positive from being negative in three consecutive years before.

The president also pointed to smaller budget financing in the past two years and largest unspent budget .

The improvement in the implementation of the state budget in the first half of this year was also attributable to 16 percent increase in the state income .

The increase in the state income itself was attributable to strong 14.3 percent rise in tax revenues, as against a growth of 9.6 percent in the same period in 2017 .

"State spending continued to increase , up 5.7 percent or higher than a growth of only 3.2 percent in the same period last year," the president said. (ANTARA)

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