Indonesia’s economy was
feared to be stationery unless there was improvement in state’s budget
management. “Without essential breakthrough were afraid it would be
stationery.” The Director of Institute for Development of Economic and Finance
[indef] Fadli Hasan disclosed in Jakarta on Tuesday [20/5].
To illustrate, in the past
5 years around 50% of state’s budget was spent on energy subsidy and wages
expenditure. Therefore, Fadhi suggested the next Government to focus effort on
infra structure building and enhancement of bureaucracy efficiency; besides
also on poverty eradication programs. “Apparently the portion of state’s budget
increased for employees payroll and subsidy. Capital expenditure and social
spending are closely related to the marginal group. Poverty elimination process
had not been effective; expenditure kept increasing but reduction of poor
people was slow.” He said.
Meanwhile Reza Hafiz, who
was also an Indef economist remarked further that subsidy expenditure which
expanded could not be benefited by the poor people. Most of the budget was
spent on subsidizing oil and electricity consumed by well to do people. Subsidy
for food was been less than 20% of total subsidy budget and tend to decline.
For that matter fertlizerrs and seeds must be prioritized. (SS)
Business New - May 23, 2014
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