Budget Efficiency, Momentum to Improve State Financial Governance

President Prabowo Subianto’s instruction regarding budget efficiency is a strategic momentum to improve state financial governance.

Economist and Public Policy Expert at UPN Jakarta, Achmad Nur Hidayat, assessed that this policy allows for a shift in the budget from ministerial posts to more priority programs.

“For example, the budget reduced from ministerial posts can be allocated to more priority programs, such as public infrastructure spending, social assistance targeting vulnerable groups, and job creation programs,” he said.

In addition, budget efficiency is expected to provide direct benefits to the community. Funds from budget savings should be allocated to strengthen public welfare programs, such as social assistance and energy subsidies.

“This policy will help suppress inflation and maintain the stability of basic necessities prices, so that the community is not burdened by price increases caused by overly tight fiscal policies,” explained Achmad.

Budget efficiency also opens up opportunities to increase access to financing for small and medium enterprises (MSMEs). Funds from efficiency can be allocated to strengthen support for the small business sector, either through loan interest subsidies or more flexible credit schemes.

Previously, Deputy Chairman of the DPR Finance Commission, Fauzi H. Amro, also supported this budget efficiency instruction. According to him, budget efficiency is the government’s obligation to ensure more optimal fiscal space.

Budget efficiency can be carried out by cutting non-substantial spending, such as official travel and procurement of office stationery (ATK)

“So far, there has been a lot of unnecessary waste, even though the budget could be allocated to more substantial things,” said Fauzi.

Budget savings allow the government to realize various priority programs of the president, such as the free nutritious meal program, food security, and energy security.

“These savings are important so that Mr. Prabowo’s vision and mission can be implemented properly in 2025 to 2029,” he added.

For information, this budget efficiency is based on Presidential Instruction (Inpres) Number 1 of 2025 concerning Efficiency of Spending and Implementation of the State Revenue and Expenditure Budget and Regional Expenditure for the 2025 Fiscal Year.

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