ULM Economist Highlights Budget Efficiency of Banjarmasin City Government: Government Must Be Careful and Wise
Banjarmasin – The Banjarmasin City Government is implementing budget efficiency policies to align expenditures with regional financial conditions. This step can be a positive strategy if done accurately. However, this policy also has the potential for negative impacts, especially for the private sector that relies on government activities.
Hidayatullah Muttaqin, an economist at Universitas Lambung Mangkurat (ULM), reminded that budget savings, particularly in official travel, are necessary to make spending more effective.
“Efficiency in official travel budgets is important to ensure that spending truly meets the needs of the region and the center. However, in areas where the private sector still relies on government activities, this policy can have a double impact,” he said.
One example of a possible impact is the decline in revenue for hotels and restaurants that have been relying on government activities. If the revenue of this sector decreases, the workforce could also be affected, ranging from reduced income to layoffs.
“Therefore, it is important for the government to mitigate the negative impacts of this policy,” he added.
In addition to budget efficiency, Muttaqin also highlighted the Free Nutritious Meals (MBG) program, which is currently under attention. He believes that this program is less appropriate to be implemented under conditions of limited budget and resources.
“This program is not necessarily bad, but our financial capability is still very limited,” he said.
According to him, the MBG program was born from political promises, not from thorough research. He argued that budget allocation should be more focused on improving the quality of education and human resources.
“The government should prioritize the development of the education sector, such as providing free education access from elementary to higher education, equalizing educational facilities, and improving the welfare of teachers and lecturers,” he explained.
Amid increasing national debt, the government needs to be wiser in determining spending priorities to avoid adding to the fiscal burden in the future.
“Budget efficiency implemented with the right strategy will provide great benefits. Conversely, poorly directed policies can create new problems,” he emphasized.
In conclusion, he stressed the importance of careful and directed resource management.
“In situations like this, we must be smart in managing the budget. Focusing on sectors that support long-term growth, such as education, is a wiser step,” he concluded.
