A Smarter Way to Evaluate Budgets
Disclaimer: I am not an economist, a management expert, a finance minister, or a member of Bappenas. But I want to critique these smart people based purely on experience. So, if someone later says, “Well, in theory, it works the way you described, but in practice, it’s different…” —know this: I don’t know the theory. What I’m criticizing is what actually happens on the ground. The key term I want to discuss is “spending” ( serapan ). From the moment I first encountered the world of budgeting years ago, this word has been a mantra for government officials. I naïvely asked at the time, “Why is spending the entire budget considered an achievement?” My boss back then gave me the same answer I’ve since heard from everyone: “The ability to spend the budget reflects good planning.” If a department fails to use its entire budget, it means their planning is poor! The following year, their budget will inevitably be reduced as punishment. This logic is precisely what fuels the spending frenzy...