image head news

DEVELOPMENT: Budget Planning Synchronised for Priority Programmes

Date :

01 Mar 2017

Category :

Other Infrastructure Policy

Source :

Kompas

File :

Kompas, 6 March, 2017, Page 20, Section: Ekonomi 
Author not mentioned

JAKARTA, KOMPAS - Government Regulation on synchronisation of development planning and budgeting processes has been finalised. The regulation will be issued at the end of March. The synchronisation is intended to ensure that priority programmes get adequate budget allocations, so that the development targets will be achieved.

Head of the National Development Planning Agency (Bappenas), Bambang PS Brodjonegoro, in Jakarta, Sunday (5 March), stated that ministerial-level finalisation was discussed in a work meeting at the Coordinating Ministry for Economic Affairs, which involves Bappenas and Ministry of Finance. The meeting was held on Thursday last week.

"In essence, this government regulation creates a sync between planning and budgeting. There is a strengthening of the role of Bappenas," said Bambang.

Strengthening the role, according to Bambang, is reflected, among others, by the authority of Bappenas to compile indicative budget ceilings, together with the Ministry of Finance. All this time, the preparation of the indicative ceilings was the sole authority of the Ministry of Finance.

Thus, Bambang continued, Bappenas will be able to ensure the priority programmes as planned by the government get sufficient budget in the State Budget (APBN). Changes that may occur, insofar as they relate to the priority programmes can only be done along with permission from Bappenas.

"All this time, frankly it wairity utsludedor n the S getson of Australiach partnership. In addition, this can also further nurture the visits of foreign s difficult for Bappenas to know whether what was planned had been included in the budget or not. If there was a budget addition, it had to be in order of priority. Similarly, if there was a budget cut, priority programmes should be taken into consideration. What was serious, in the past, budget cuts could target priority programmes," he said.

For ministries and state agencies, Bambang continued, the implication of this government regulation is that they no longer have to bother making a separate report, namely work plan for Bappenas and Ministerial and Agency Budget Work Plan (RKAKL) to Directorate General of Budget of the Ministry of Finance.

"Later all these will become one. Only the RKAKL. So, the work plan becomes a part of RKAKL. These points are included in the new government regulation," said Bambang.

The synchronisation of planning and budgeting is targeted to be effectively applied to the preparation of the Draft State Budget (RAPBN) in 2018, inclusive its execution when it has become APBN. However, the synchronisation also has begun to be applied in the revised 2017 APBN, as long as there are changes to the budget for priority programmes.

President Joko Widodo has given an instruction during several cabinet meetings pertaining to the harmonisation of planning and budgeting. This started from the findings on the grounds that execution of infrastructure development projects had not been effective because it was not according to plan.

While in June 2016, Vice President, Jusuf Kalla, in a dialogue with Bappenas employees, emphasised [the importance of] strengthening the role of Bappenas. This strengthening covers the aspects of budgeting, planning, and relationship between the central government and local governments. (LAS)