Jakarta, Indonesia (News Today) - Economist Faisal Basri said the low absorption of government budget in the first quarter could hamper acceleration of economic growth.
"The growth in the first quarter should have been six percent. It should have been secured. But the government spending at the time was minus 8.8 percent," he said when met at the office of the coordinating minister of economic affairs here on Wednesday.
He said the growth in the first quarter should have reached six percent because exports and investment were increasing.
"It could be blindly achieved but spending was slow while exports were good, investment was also good although household spending was down a bit," Basri who is also lecturer of state University of Indonesia said.
According to him, government spending in the past three years had indeed been low and it needs quick changes so that in the third quarter absorption could be faster. He said to accelerate government spending budget planning must be made better.
"The problem is absorption in January to March this year was worse than in the same period last year," he said. The government has been able to achieve 5.7 percent growth in the first semester while the target of growth until the end of the year is 5.8 percent.
Source : kompas
Monday, July 19, 2010
Low Budget Absorption Slows Down Economic Growth in Indonesia
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