Sri Mulyani to Redesign State Budgeting System



Laila Afifa

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  • TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati reported that she planned to redesign the budgeting system of the State Budget (APBN) in 2021.

    “We aim to redesign the budgeting system in order to accelerate what has been initiated so far, which is developing the money follow program,” said Sri during a meeting with the Commission of Finance of the House of Representatives (DPR) on Tuesday, June 23.

    Thus, she explained, the set budget will follow the program that has a clear function, output, and outcome. According to Sri, one of the evaluations held by her ministry along with the National Development Planning Agency (Bappenas) was that the central and regional government’s programs were often not synchronized, causing ineffective budgeting.

    Besides, programs noted in the planning and budgeting documents were often different, so that the government should synchronize it from the budgeting data in Bappenas and the ministry or institution’s plan with the budget execution lists (DIPA).

    Other evaluations include the formulation of the program's nomenclature, outputs, and outcomes that have only been noted in a normative and immeasurable way. “So it’s difficult to connect the output and outcome with the budget,” Sri added.

    Moreover, the public found difficulties to understand information regarding the development of a project since the content was too normative and has a lot of descriptions, hampering them to ensure accountability and calculate the efficiency of a project.

    Therefore, Sri Mulyani hoped that with the redesign of the budgeting system, her ministry’s plans to develop efficient spending through the money follow program, performance-based budgeting system, up to the application of value for money from planning to budgeting could be carried out.

    Read: Jokowi Calls for Transparency in State Budget Changes