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Editorial: Maneuvering Education Budget

Jakarta (Koran Tempo: 06/06/06) The House of Representatives and the president should meet to discuss the education budget. This is the right and constitutional way. Moreover, the Constitutional Court has ruled that the House and the government should increase education allocation from 9.1 % (around Rp 36.8 trillion) to 20 % of the State Budget.

The decision was based on the stipulation in the Constitution. Article 21 in the fourth Amendment of the Constitution rules: "The State shall allocate at least 20% of the state and regional budget to run the national education." We hope the meeting will produce a clear picture concerning the government’s plan to realize the Constitutional Court’s ruling.

Do not leave this matter pending without any decision like others. Because no one wants education allocation less than 20% including the government. The problem is not whether it accepts or it rejects it; but whether the government is capable of fulfilling it. Our state budget is deficit this year. The government should spend an additional Rp 10.2 trillion in subsidies to avoid increasing electricity tariff.

This brings the budget deficit to Rp 22 trillion. To fulfill the minimum education allocation requirement of 20% of the state budget, the government needs at least an extra Rp 50 trillion. This sum will add the burden to the state budget. It needs an extra hard work to bridge the financial gap. The big task is maneuvering the budget posts, reducing allocation for a certain post; while increasing allocation for another post.

This is not easy. Boosting tax and export revenue is easy in theory, but it is very hard to realize. The business world is sluggish facing people’s low purchasing power. Income decreases, thus tax paid to the state also decrease. To bridge the financial gap, the government has to seek for external debt. The problem of this year’s budget might be resolved by putting the burden to the future, to our grandchildren.

One the one hand, we agree that the education sector should get at least 20% of the state budget. On the other hand, we realize that the government has no money. Therefore, it needs a strategy. Education allocation should be carried out like it should be on the paper.

But its realization might be different. In reality, not all the funds in the budget can de spent in the year in question. Maybe the government should choose this way: formally allocates 20% of state budget for education, but it only spends as much as it could afford.
 

 

 

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