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| Muhammad Dzunnurain, Founder of Newsroom Citizen Community |
HARIANCENDEKIA, OPINION - Budget efficiency is one of President Prabowo Subianto's main strategies in managing state finances. This policy aims to optimise the use of resources to achieve sustainable economic growth. With budget efficiency, the government can allocate funds more strategically to priority sectors such as defence, education, health and food security.
However, behind the economic benefits, there are potential political impacts that cannot be ignored. Austerity measures in one sector often generate reactions from various parties, including the bureaucracy, political actors, and the general public. If not managed well, budget efficiency intended to strengthen economic stability can actually lead to political deficiencies that weaken the government.
Rationality of Budget Efficiency
In its budget policy, the government has managed to achieve an efficiency of IDR 306.7 trillion in the 2025 State Budget. The funds were then diverted to fund priority programmes, one of which is the Free Nutritious Meal designed to improve the nutritional quality of school children.
This programme has received an initial allocation of IDR 71 trillion to reach 19.47 million beneficiaries, and is expected to expand to 82.9 million beneficiaries with an additional budget of IDR 100 trillion. In addition, budget efficiency is also directed at strengthening the defence sector by modernising defence equipment and improving the welfare of soldiers. The infrastructure sector also received attention with the development of national roads and digital-based transport to support economic growth.
Meanwhile, education and health received additional budgets to improve facilities and provide scholarships for underprivileged students. The government also increased budget allocations for the food security and energy sectors to reduce dependence on imports and ensure the sustainability of the national economy.
Budget Efficiency as a Political Instrument
The concept of efficiency in economics has long been a concern of classical thinkers. Adam Smith in The Wealth of Nations (1776) emphasised that efficiency in the division of labour can increase productivity and economic welfare. This principle is relevant in the context of state budget management, where the proper distribution of resources can maximise economic benefits.
Budget efficiency allows the government to reduce dependence on foreign debt and increase fiscal independence. With more effective allocations, priority programmes can be more optimal in improving people's welfare. In addition, this policy can strengthen the government's credibility by demonstrating a commitment to clean and transparent financial management.
Furthermore, the reduction of wastage in state spending also contributes to maintaining economic stability and preventing uncontrolled inflation.
Political Deficiency as a Risk to Budget Efficiency
Despite its benefits, budget efficiency cannot be separated from the potential political impacts that follow. Max Weber in Economy and Society (1922) explains that a rational bureaucracy can improve the effectiveness of resource management, but at the same time, changes in budget structure can create resistance.
Budget cuts or diversion of funds from certain sectors can trigger discontent from various political actors, including parliament and coalition parties. If there is no good communication approach, this policy could be perceived as a threat to their political interests.
On the other hand, bureaucrats who are accustomed to certain budget patterns tend to resist changes that could reduce resources for their agencies. As a result, the implementation of efficiency policies can be hampered if not matched with appropriate mitigation strategies.
Another impact that needs to be considered is the potential for social turbulence arising from budget reductions in certain sectors. If budget efficiency leads to cuts in subsidies or social assistance, then negative reactions from the public may be inevitable.
People who feel aggrieved by this policy may lose trust in the government, which in the long run may lead to political instability. If the central government also reduces transfers to regions, this could worsen relations between the centre and regions, triggering wider political tensions.
In extreme cases, public dissatisfaction can be used by opposition groups to undermine the legitimacy of the government. Criticism of budget efficiency can be used as a political tool to attack government policies, creating a narrative that efficiency is not in the best interest of the people, but is merely a way to reduce spending without considering its social impact.
Mitigation Strategies to Avoid Political Deficiency
To avoid the risk of political deficiency due to budget efficiency policies, a comprehensive mitigation strategy needs to be implemented:
Firstly, effective public communication must be prioritised. The government must transparently explain the reasons and benefits of this policy to the public, not just the bureaucracy. Clarity in information delivery can reduce misunderstandings and increase public support for the policy.
Second, social mitigation needs to be carried out by allocating compensation funds for affected sectors. This way, people can still benefit from budget efficiency, instead of losing their economic rights.
Third, building political consensus is an important step in ensuring government stability. The involvement of various political actors in policy formulation can reduce resistance and strengthen support for efficiency measures. If parliament and coalition parties feel involved in decision-making, they are likely to provide stronger support.
Fourth, efficiency policies should be flexible and evaluated regularly. If negative impacts become apparent, the government should be prepared to make adjustments to avoid greater political instability. Adapting to evolving conditions will ensure that budget efficiency continues to deliver economic benefits without causing adverse political impacts.
Finally, the utilisation of technology is also a crucial element in supporting the effectiveness of budget policies. Technology-based financial management systems allow for greater transparency, allowing the public to monitor how the budget is spent. With digitalisation, every rupiah saved can be ensured that it is allocated to improve the welfare of the people in real terms. This will not only improve budget efficiency, but also strengthen public trust in the government.
Ultimately, budget efficiency is a policy that has the potential to provide great benefits to the national economy, but also has political risks that need to be anticipated. Its success depends on how the government manages communication, builds political consensus, and maintains a balance between austerity and public welfare.
If mitigation strategies are well executed, budget efficiency can be a key instrument in realising a more transparent, strong and sustainable government. However, if not managed carefully, efficiencies intended to strengthen the economy can lead to political deficiencies that threaten government stability.
*) Author: Muhammad Dzunnurain, Founder of Newsroom Citizen Community.
*) All news content, articles, opinions are entirely the responsibility of the author, not part of the editorial responsibility.
*) All news content, articles, opinions are entirely the responsibility of the author, not part of the editorial responsibility.
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