DPR Criticizes Realization Of Education Budget Not Reaching 20 Percent, This Is Sri Mulyani's Response

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati explained regarding the allocation of the education budget in the State Revenue and Expenditure Budget (APBN) which has never reached 20 percent, although this is a mandate of the 1945 Constitution (UUD) and was confirmed in Law Number 20 of 2003 concerning the National Education System.

"Now we will see based on the definition conveyed by Mr. Dolfie, that is 20 percent of spending. Let's all not cause misperceptions. Let's pay attention to state spending. The state spending consists of K/L spending, BUN (State General Treasurer) spending, and TKDD (Transfer to Regions and Village Funds)," he said at a Working Meeting with Commission XI DPR RI, Tuesday, July 22.

According to him, the proportion of the education budget is very dependent on the movement of other expenditure components, such as when subsidized spending or compensation increases, the portion of the education budget for total spending can appear to decrease, even though the nominal value remains or even increases.

He gave an example when El Nino occurred, the government increased social assistance expenditures (bansos), so that total state spending increased and the portion of the education budget in percentage looked smaller.

In addition, Sri Mulyani revealed that part of the education budget is placed in financing posts as part of a careful fiscal management strategy.

According to him, this strategy aims to prevent budget waste towards the end of the year just to pursue a nominal target.

"At that time, when we were close to September, we had not reached 20 percent, so given K/L, it was additional spending in October. Three months sir, what kind of Rp80 trillion did you want to spend? That's a problem too," he said.

He added that the formation of budget reserves through the Endowment Education Fund scheme is intended so that the budget is not used in a hurry, and can provide long-term benefits

However, Sri Mulyani acknowledged the need for improvement so that the spending mechanism is more efficient, economical, and in accordance with the principles of good financial governance.

"We also continue to think on how on the one hand to follow the Constitution, on the other hand, Mr. Dolfie asked for good spending quality, good governance and all kinds. We will continue to communicate with K/L and others so that we are all on the same page," he said.

Previously, Member of Commission XI DPR RI from the PDIP faction, Dolfie, explained the comparative data on the realization of the education budget from year to year, which showed stagnation.

He highlighted that although the Constitutional Court (MK) has decided that the allocation of the education budget is at least 20 percent of the APBN, the realization of the budget has never reached that figure.

Dolfie said that in 2007 and 2008, the education budget only reached 18 percent and 15.6 percent, and this trend continued in 2022 was recorded at 15.46 percent, 2023 at around 16.4 percent, and in 2024 at 17 percent.

According to him, some education funds are placed in financing posts, not in shopping posts, so that the budget is not fully realized.

"If we look at the Constitutional Court's decision in shopping. For what reason? It is stated here that the component of the education salary is included in 2007. The salary component is spending. Therefore, in the future, 20 percent of this is our hope of including everything in shopping. Not from reserves that are deliberately not realized, so the realization of 20 percent of the education budget has never reached 20 percent," he said.

According to him, there is a difference of about 3 percent of the target for the education budget that is not realized, or equivalent to Rp80 trillion.

According to him, with such a large fund, it can be allocated to strategic programs such as Free Nutrition Food (MBG) and because it is placed in financing, not shopping, these funds tend not to be used.

"In terms of financing reserves, the education reserves that are placed in financing are transferred to spending, it is impossible not to realize them. So it is as if the deficit is only contributed or the biggest contributed by education. Even though the deficit contribution is not only from the education sector," he said.

Dolfie emphasized that the failure to fulfill the 20 percent allocation of the education budget occurred because from the start the planning was not directed to make it happen and if there was a commitment, the education budget could be designed and executed better without having to be sacrificed.

"If it was planned from the start, it was impossible not to use it and rush to use it at the end. Because it was not placed in the shop, it happened like that," he said.