GOVT TO FINISH 93.6 PCT OF ITS 2010 BUDGET-FUNDED PROJECTS

By Andi Abdussalam

Jakarta, Dec 28 (ANTARA) - The government is optimistic that it will finish about 93.6 percent of its 2010 budget-funded projects at the end of this year, and is committed to finishing all projects funded by the 2011 state budget next year.          Finance Minister Agus Martowadojo said the government targeted to absorb 93.6 percent of the 2010 state budget, which was higher than the budget absorption in the previous year.          "We have sometime ago simplified the procedures for the implementation of goods and service projects in order to accelerate budget absorption. Data on project realization until December 23 2010, and payments that are still to be made, indicate that the budget absorption until the end of 2010 would reach 93.6 percent," the finance minister said in a report during a handing over function of 2011 Budget-Funded Project Proposal Lists (DIPA) at the State Palace here on Tuesday.          In the 2010 revised state budget, state expenditure was set a Rp1,126 trillion and the state revenues and grant were valued at Rp992.40 trillion, with a deficit set at 2.1 percent from the gross domestic product or amounting to Rp133.75 trillion. The deficit was later revised down to Rp95.1 trillion or about 1.5 percent.          The government is convinced to absorb some 93.6 percent of the budget after it took several steps. Up to December 23, 2010, the absorption of DIPA 2010 had reached 83.4 percent of the 2010 revised state budget. The absorption until December 23 this year is actually smaller than that in the same period a year earlier which stood at 86.5 percent.          Yet, there are a number of indicators --such as letters of payment orders to projects already implemented -- that make the finance minister confident of budget absorption to reach 93.6 percent.          The disbursement of 2010 State Budget funds up to the end of November, for example, reached Rp817.2 trillion or 72.6 percent of the total amount of Rp1,126.1 trillion.          The ministry of finance said last week that of the disbursed amount, Rp525.6 trillion or 67.3 percent of the ceiling was spent by the central government. Expenditures by government ministries and state institutions totaled Rp249.6 trillion or 68.2 percent of the ceiling in the 2010 state budget. There was a slight decline in the expenditures compared to 70.7 percent in the 2009 budget.          The utilization of state budget funds by government ministries and state institutions had been influenced by among others delays in the issuance of disbursal approvals by the various budget funds utilization authorities. The same tendency was found in almost all working units at central and provincial levels.          The delays were said to have had something to do with the more prudent approaches taken by the ministries in light of the more progressive anti-corruption measures in Indonesia.          In addition, the slow move on the utilization of state budget has also been influenced by the tighter implementation of procurement processes for goods and services, in particular with the increasingly debated process of tenders as well as the reports by non-governmental organizations to police and prosecutors' office.          However, the government is committed to implementing all budget-funded programs next year.          President Susilo Bambang Yudhoyono when handing over the DIPA 2011 on Tuesday asked ministers and the heads of all government agencies and state institutions to develop a result-oriented mindset in the spending of state budget funds.          The President asked that the budget be used in more innovative, creative, and proactive manner.  "Let us change our mindset on the use of State Budget funds  from input-based to output- and outcome-based. Stop using budget funds  in  the 'business as usual' way," the president said.          The 2011 State Budget consists of state revenues and grants amounting to Rp1,104.9 trillion, up 11.3 percent from the previous year's budget. Allocation for state revenues  is Rp1,229.6 trillion which represents an increase of 9.2 percent from the previous year's budget while the budget deficit is projected to amount to Rp124.66 trillion, or 1.8 percent.          The handing over of DIPA 2011 is this year done  earlier than in previous budget years. It is implemented at the end of the year so that starting from the first day of the year 2011 all state treasury offices (KPPN) across the country can be ready to serve the disbursement of funds for all work units.          Punctuality in fund disbursements was of great importance for the success in the implementation of development programs which have been well and carefully planned.          The national priorities to be achieved in 2011 in accordance with the government's plan of action were bureaucratic reform and good governance, education quality improvement, implementation of health improvement efforts and percentage of drug availability, and poverty reduction.          Finance Minister Agus Martowadojo said that handing over of the DIPA 2011 at the end of 2010 indicated the government?s commitment to implementing all of its programs both in the central and regional governments.          "The early handing over of the DIPA 2011 in done in an effort to enable ministries and other government agencies to carry out their activities as soon as possible in 2011. Actions can be done at the end of 2010 so that the contracts could be concluded early in 2011 and are supported by all sides," the minister said.          The minister said that the 2011 state budget was made based on a performance-based budgeting system oriented to output and outcome so that goals that would be achieved could be taken for granted.          (T.A014/A/HAJM/17:15/f001) 28-12-2010 17:16:3