The Ministry of Finance will soon issue a Ministerial Regulation that will regulate the details regarding the authority of the Minister of Finance to modify the budget of Ministries/Institutions. The new Ministerial Regulation will serve as an implementing regulation for Government Regulation No. 6 of 2023 concerning The Drafting of Work Plan and Budget.
Lisbon Sirait, the Director of Budgeting System, explained that the authority of the Minister of Finance to adjust the budget of Ministries/Institutions is newly regulated in Government Regulation No. 6 of 2023.
Article 19 of Government Regulation No. 6 of 2023 stated that the Minister of Finance can adjust the programs, activities, and expenditures of Ministries/Institutions in reference to national priorities.
Not an exclusive authority
According to Lisbon, budget adjustment can be done when the budget cannot be executed. However, budget sharpening is not the sole prerogative or exclusive right of the Minister of Finance.
Budget adjustment can be done after coordination between three ministers through a trilateral meeting involving the Minister of Finance, the relevant Ministry/Institution, and the Ministry of National Development Planning (PPN)/Bappenas.
“There is no specific regulation on which programs can be subjected to adjustment. It depends on the results of monitoring and evaluation of programs that have not been executed,” said Lisbon during a meeting with the media on Tuesday (27/6).
Draft complete and waiting for enactment
Lisbon explained that the draft of the new Ministerial Regulation has been completed and is currently in the process of enactment.
“It only needs to be published by the Ministry of Law and Human Rights, it is already been numbered, hopefully, it will be issued next week,” said Lisbon.
Other important provisions in the new Ministerial Regulation, include the elaboration of principles for quality spending, including efficiency, effectiveness, priorities, transparency, and accountability, simplification of the business process for budget revisions, simplification of documents in the payment process, and the use of electronic documents and certified electronic signatures.
This regulation will also provide a single data source for reporting centralized output achievements through the Institution Level Financial Application System (SAKTI) for budget monitoring and evaluation
The new regulation will also contain provision on rewards or sanctions based on the performance of the budget of Ministries/Institutions, including planning and budget implementation aspects.